| In a contractual relationship, it can happen that | | | | wrongdoings. Such damages are however |
| one party fails to perform to its part of the | | | | impossible to get in contract cases. |
| bargain. This situation is called a contract breach. A | | | | In addition to damages, one party can be forced |
| contract breach does necessarily means the end | | | | to cover the attorney fees and costs of the |
| of the contract or does not require bringing the | | | | other party if this clause was expressly stipulated |
| issue before a court. But in case of repeated | | | | in the contract. A court can also order the party |
| breaches or substantial loss after one party did | | | | to execute the specific performance exactly as |
| not perform its duty, you can decide, with the | | | | specified in the contract. However, courts rarely |
| help of an attorney, to solve the issue. | | | | order such extreme remedy except in real estate |
| Each contract is different and should include | | | | transactions or in other unique property, since the |
| remedies to contract breaches. But there are | | | | courts prefer not to have to monitor |
| some basic remedies that can be used to solve | | | | performance. The contract can also be simply |
| and settled contract breaches. The first remedy is | | | | canceled and both sides are excused from further |
| to ask for compensatory damages. The other | | | | performance and any money advanced is |
| which failed to perform its duty will be asked to | | | | returned. Eventually, a contract can be reformed |
| money to reimburse the other party to | | | | and the terms are changed to reflect what the |
| compensate for its loss. There is also another | | | | parties actually intended. |
| category of damages called consequential and | | | | In the event of a contract breach, parties are |
| incidental damages. One party can refer to them | | | | often well advised to directly negotiate a |
| if the losses were foreseeable at the time of the | | | | settlement through mediation and arbitration. This |
| contract and by both parties. Third type of | | | | is more cost effective than simply filing a lawsuit |
| damages: liquidated damages. Generally, the | | | | and letting the court settle the dispute. Keep in |
| amount of these damages is stipulated in the | | | | mind that negotiation should always be preferred |
| contract. At last, one party can be forced to pay | | | | to lawsuits in contract law. |
| punitive damages in case of repeated | | | | |