Mississippi business owners often work with contracts. Contracts help business owners and contractors reach business-related goals. But contracts are sometimes complex to deal with. This is especially true if there has been a breach in contract. Today we will look at how to remedy contract breaches.
After the court proves that a breach of contract occurred, the other party gets a “relief”. This is also known as a remedy. There are three main remedies for a breach of contract. They include specific performance, damages and restitution or cancellation.
Specific performance is an alternative remedy. When damages are not adequate, people turn to specific performance. This is when the court orders the breaching party to perform their contracted duties. This is common in cases where the the dispute matter is unique.
Damages are the payment for a breach in contract. It is the most common way of handling contract breaches. There are many ways to pay damages. They include:
- Compensatory damages
- Nominal damages
- Punitive damages
- Liquidated damages
What you go with depends on the unique situation of your breached contract. For example, compensatory damages put the non-breaching party back where they were pre-breach.
Finally, cancellation is the canceling of the contract entirely. All parties are void of any obligations. If the non-breaching party sues for restitution, this puts them back into the position they were earlier.
Are you interested in how to handle contract disputes? If you wish to learn more about resolving these disputes, take a look at our linked web page. Understanding how to handle these situations makes them seem less daunting.