Trust Our Experience. Protect Your Position. 

  1. Home
  2.  » 
  3. Business Disputes
  4.  » How courts may resolve a breach of contract

How courts may resolve a breach of contract

Contracts are the cornerstone of every binding business agreement. These agreements help to outline costs, deadlines, deliverables and other details. These commitments allow the business to move forward and commit to other contracts for generating income and providing goods and services to customers. If they breach their contract, the company may be in a position where it cannot meet its obligations.

Contracts also outline what happens if one party violates the agreement. Often, this initially involves arbitration, but litigation may be the only viable option for equitably resolving the matter.

Winning the case

No lawyer should guarantee results to a client. Nonetheless, we can outline standard results for those who win a breach of contract case in court:

Financial damages: The lawsuit can seek compensatory damages. These may involve money paid for services not provided, the plaintiff’s cost in fulfilling their part of the deal, and the increased costs in not fulfilling an agreement and pursuing other options to meet obligations. There may be additional punitive damages intended to punish the other party.

Return of assets: The court may instruct the defendant to return assets, money and goods already provided by the plaintiff. It could even involve property if they breached a real estate deal.

Fulfill obligations: The court may order the defendant to fulfill certain obligations, sometimes referred to as specific performance, outlined in the contract. It involves unique items or arrangements that would otherwise be difficult to replicate, even when there is also monetary compensation for the breach.

Terminate contract: If the defendant cannot fulfill their obligations, the court may also rule that the plaintiff is not obliged to meet their contract because the breach was due to matters outside the plaintiff’s control.

Litigation offers many benefits

Many say that litigation takes more time and costs more money, but sometimes it is the best or only way to resolve a contract breach. The details of each case are different, so the remedies will also vary. All of them can help businesses protect their long-term health and hold other parties accountable.