A Business Contracts Lawyer Folsom CA Professionals Trust Offers Remedies for a Breach of Contract
Unfortunately, not all contracts will be followed through as promised, which might put you or your business at serious financial risk. At Yee Law Group, we understand that in the world of business, not all agreements are always honored by both sides. When this occurs, the party who defaults on the contract should be held accountable. A business contracts lawyer in Folsom CA can help protect your business or corporation, seek forms of relief, and help you exercise any rights you have regarding the breach of contract. Contact our office today to speak with an experienced business contracts lawyer during a free consultation.
Breach of Contract
A breach of contract occurs when one party in a business contract fails to meet their obligation or duties as stated in the contract. The party who failed to fulfil their contractual duties has “breached” the contract and may be legally obligated to pay compensation to the other party. A breach may involve various acts which violate the business contract, whether they are material or immaterial. No matter what kind of breach occurred, the non-breaching party is entitled to seek remedies.
If you believe you are the victim of a breach of contract, call Yee Law Group to speak with a business contracts lawyer in Folsom CA.
Remedies for a Breach of Contract
If one has experienced a breach of contract, it is important to know that there are various forms of relief or “remedies” for the non-breaching party. The most common remedies are the payment of damages, specific performance, or rescission and restitution. A business contracts lawyer in Folsom CA from Yee Law Group can help you determine what remedy will be your optimum solution.
The most common form of remedy in a breach of contract is the payment of damages. Your business contracts lawyer in Folsom CA from Yee Law Group can review your case and provide you an understanding of how you might recovery your damages. Some forms of damage recovery include:
- Compensatory Damages – Aims to reimburse costs to the non-breaching party to put them in the position they were in before the breach occurred.
- Punitive Damages – Payments that the breaching party must give to the other party in addition to the financial damage caused by the party’s contract breach. Punitive damages are meant as punishment for the breaching party, but are rarely awarded in breach of contract lawsuits.
- Nominal Damages – Damages awarded when the breach occurred but the non-breaching party cannot prove that any monetary loss was the direct result of the breach.
Liquidated Damages – Damages agreed to be paid by the breaching party as specified in the contract in the case of a breach. Typically, liquidated damages are reasonable approximations of the damages if a breach of contract occurs.
- Attorney Fees and Court Fees – Fees that may be recoverable as damages if authorized by the legal statute or as specified in the original contract.
If the non-breaching party believes that none of the damages described above are adequate reimbursement for the breach of contract, then they may pursue a specific performance remedy. Specific performances are awarded in a case for which no other remedy (such as money) will truly compensate the non-breaching party. Specific performances are typically used as the remedy in a breach of contract if the agreement was unique and damages paid would not put the non-breaching party in the same position they were in before the breach. For example, a court-ordered specific performance may include the transfer of goods or property to the non-breaching party that would suffice as a remedy.
Specific performance orders are left largely up to the discretion of the court, and will only be granted if the contract was fair and equitable. Talk to one of our business contracts lawyer in Folsom CA from Yee Law Group to learn more about this.
Rescission (and Restitution)
The non-breaching party may cancel the contract at any point, and this is known as rescission. The rescission, or cancellation, of the contract basically means that the contract never existed in the first place. All obligations of either parties are terminated, and the position of both parties before the contract must be restored. In a breach of contract, the non-breaching party will rescind the contract only if the breach was substantial enough to defeat the purpose of the contract. A business contracts lawyer in Folsom CA from Yee Law Group can provide you more information specific to your case.
If a non-breaching party rescinds a contract, they will usually follow it up by filing a lawsuit for restitution against the party at fault. Restitution will ensure that the non-breaching party is reimbursed to the state they were in before the breach.
Call Yee Law Group
If you believe you are entitled to remedies following a breach of contract, call Yee Law Group for more information, or for a free consultation with a trusted business contracts lawyer Folsom CA offers.