When you sign a contract, you expect all the other parties to keep their end of the promise and abide by the rules. However, sometimes one or more parties break a law of the contract or do not fulfill the course of action as per the contract terms. It is known as a breach of contract. 

When a breach occurs, one party suffers damages because of the other. With the help of a Clearwater commercial litigation lawyer, they can obtain various types of recoveries for the damages. 

Types Of Breach Of Contract

  • Material Breach – A material breach takes place when one party receives different results from what was promised or what was mentioned in the contract. 


  • Minor Breach – In minor breaches, the contract is completed and delivered from one party to another, but the delivering party has failed to meet some part of the obligation. 


  • Anticipatory Breach – In the anticipatory breach, one of the parties anticipates that the other party will not fulfill their obligations of the contract, even though the breach has not occurred yet. 


  • Actual Breach – An actual breach occurs when a party has refused to fulfill its obligations in due time or has delivered poor results. 

Types Of Remedies

Rescission

When one party fails to follow the contract or breaches it, the non-breaching party can cancel the agreement. The aggrieved party can legally cancel the contract and file for the damages. For example, if one party promises the other to make half of the payment by a specific date and the other party fails to do so, the aggrieved party can cancel the contract. 

Specific Performance

This type of legal remedy is used when monetary compensation is not enough to relieve the troubles of the other party. If the breaching of a contract puts the injured party in a position where they cannot get better with the help of money, then the court orders the breaching party to fulfill their contractual obligations. 

Injunction

The court grants an injunction remedy when a party does something that threatens a wrongful course of action and is unacceptable. If the party is threatening to commit such an act, the court has the power to restrain them. In case they have already done it, the court will ask them to stop. If they continue to do so, they will face legal consequences. 

Quantum Meruit

The term quantum meruit means “as much as is deserved.” If the contract gets canceled after a party has completed some percentage of the work, they can bring legal action to recover compensation for work done. 

Damages

Several types of damages are covered under breach of contract remedies. 

  • Liquidated damages
  • Nominal damages
  • General damages
  • Special damages
  • Vindictive damages