What Types of Damages Can I Expect from a Breach of Contract Lawsuit?

If you’ve entered into a business contract with someone and they failed to follow through on their end, you have legal recourse to obtain damages. Whether they promised you a product or service, a contract holds them liable for what was agreed upon. In Florida, there are many types of damages that can be awarded based on the particular contract and the situation. Let’s examine the most common types of damages that you can expect from a breach of contract lawsuit:

Restitution

When one party has spent time or money to fulfill their end of the agreement, but the other party has not, the party who is at a loss can request restitution to compensate them for their efforts. While this isn’t necessarily classified as true damages awarded in court, it can make a huge difference for the party, especially if they were providing goods that cost them money to produce.

Punitive Damages

These types of damages can almost be looked at as a punishment for the party who broke the contract. Although difficult to get in contract cases, punitive damages can be awarded to send a message to the breaching party that they should think again before breaking a contract.

Compensatory Damages

These are the most common type of damages awarded in a breach of contract lawsuit. Awarded in monetary form, these help businesses recover when another party has broken their contract. Compensatory damages come in two types: consequential and expectation. Consequential damages account for future losses based on the unfulfillment of a contract. Expectation damages look at the cost of the product or service that wasn’t provided and reimburse the other party at market value.

Nominal Damages

Somewhat similar to punitive damages, nominal damages are awarded to prove a point that the other party was wrong. Again, these are hard to receive in court for a breach of contract case, but are sometimes approved by the judge who wants to illustrate that one party was clearly right.

Liquidation Damages

This type of damage is quite separate from the others, as it is written into a contract at the time of its creation. Liquidation damages are agreed upon by both parties, and are intended to encourage both sides to keep their end of the agreement.

The team at Annette Sanchez Law can help if you have entered into a contract with another party and they have broken their end of the arrangement. Give us a call today to explore the types of damages you might be entitled to.

Share this on...Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Email this to someone