Employment Law

Breach of contract – Remedies

Breach of contract – Remedies

By on Jan 19, 2016 in Employment Law |

When a breach of contract happens, the party that was damaged can request remedies from the side that breached the contract. Remedies must be based on terms that are written in that contract. There are four ways that a contract can be breached.

First there is non-performance – if party fails to do any services that are stated in the contract. Then you have poor performance, where one party failed to perform their services at the sufficient level. Part-performance is a way of contract breach where a party does only part of its required service. Then there is a breach of contract that happens when a party does different service that it was reasonably expected from them. If you have some problems you can find a solution at  los angeles social security lawyers.

184391230When it comes to damages, there are several types of it.

Compensatory damage is given to a party that is damaged by the breach of the contract. The party that breached that contract is required to pay two damages: direct damage from the breach and consequential damage- damage that will happen due to breach of that contract.

Anticipatory-BreachThen there are liquidated damages. These damages are stated in the contract, and they will be paid if some of the terms of the contract are breached. This is done to avoid calculation of compensatory damages by court when a breach happens. There are two kinds of liquidated damages, those that are legitimate, and those that are called penalties. Penalties are in most cases reduced damages, that are paid for smaller breaches of contract ( they do not endanger the contract, but are issued to prevent further breaches of the same kind ).

Nominal damages are another kind of damages. They consist of small amounts of money paid due to lack of real damage caused by the breach. In that case breach causes little to no damages to the other party, but that party may require compensation ( which is rather small ) to send a message to the other party that breaches will not be tolerated.
Punitive damages are used as a punishment to the offending party. They are not used to cover expenses made by breach, but to admonish the guilty party.