What Are the Common Damages in a Contract Dispute and Breach?

What Are the Common Damages in a Contract Dispute and Breach?

You may have asked someone to perform a task for you or you may have decided you wanted to move into a new apartment. You entered into a contract only to realize down the road that the other party has flaked and is now refusing to answer your calls. Even the apartment complex is no longer accepting phone calls or emails from you, and you are a week away from move in. What are you supposed to do should you find yourself on the receiving end of a contract breach? The below consequences may give you an example of what you can expect in terms of damages and payment from the guilty party.

Liquidated Damages

In every legally binding contract, there should be a section that talks about what will happen if one person does not hold up their end of the bargain contemplated in the agreement. This section should specify the number of liquidated damages that the injured party should receive. This is almost always a financial award, but it can sometimes include property or a service.

Attorneys’ Fees

If you fulfill your end of an agreement and the other person doesn’t, you may have to engage a contract lawyer tampa to help you get back what you are owed. Your attorney may also have to file a lawsuit or do other work to make the contract conditions right again for you. The party in breach should have to reimburse you for the work your attorney had to perform due to their mistake.

Compensatory Damages

There are times when a failure to perform under a contract is so severe that further damages may be warranted. In these cases, compensatory damages may be awarded. This usually happens when all the parties involved in the agreement knew the consequences of a breach at the time it was executed. In this situation, the innocent party may get more money for expenses and losses than initially set forth.

Punitive Damages

Though rare in breach of contract lawsuits, a court may order a guilty party to give the innocent one money far above and beyond what was requested. This is known as punitive damages, and it is usually done when the judge wants to punish the offender for outlandish and highly offensive behavior.

The bottom line when it comes to entering into a contract is making sure you understand the entire document. If you don’t, you may find yourself on the wrong end of a breach of contract lawsuit. Contact an attorney to help you figure out how to handle a violation regardless of the side you’re on.

 

About mata