Potential damages in a breach of contract case

Potential damages in a breach of contract case

| Jun 3, 2020 | Business Law |

People and businesses in San Diego enter into many contracts each year. These contracts are important to ensure both sides know what is expected of them and what they are expecting from the other side. However, contracts are entered into prior to either side beginning their obligations. Sometimes after the obligations begin, complications arise or disagreements between the two sides emerge and one side may not follow through with their obligations under the contract.

When there is a breach of the contract, one side most likely suffers some sort of harm because of it. In some situations the two sides can come back together to modify the terms of the contract. Other times they can mediate a solution to their disagreement. However, that is not always the case and when the sides cannot resolve their disagreements on their own one side may decide to sue the other party for the damages they feel they suffered.

In a breach of contract case, there are certain outcomes that the winning party may receive. One is specific performance which requires the parties to perform their duties under the contract. Another is cancellation of the contract and each party receives back what they put in. The final outcome is that the winning party will receive damages.

There are different types of damages though. One type of damage is compensatory damages, which compensates the winning party for their loss. Another is punitive damages which are to punish the losing side for their wrongdoing. There are also liquidated damages which are usually stated in the contract itself and finally nominal damages if the monetary damages are not large.

Contracts in San Diego can be very simple or they can be very complex. However, no matter how complex the contract might be, both sides must fulfill their obligations. If they do not then they could be liable for compensating the other side. Experienced attorneys understand the complexities of contract disputes and may be able to guide one through the process.

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