What Damages Can a Plaintiff Receive in a Breach of Contract Lawsuit?

 Posted on October 20, 2021 in Uncategorized

Businesses often rely on contracts to protect their rights and interests, and these legal agreements can protect them from financial losses if they meet all of their contractual obligations. However, there are many cases where a business may be placed in a difficult position because another party failed to fulfill a contract’s terms. In these cases, a business may pursue a breach of contract lawsuit, and it may seek to recover damages from the other party to address the losses that it experienced because of the breach.

Types of Breach of Contract Damages

When pursuing civil litigation to address a breach of contract, a plaintiff will not only need to show that the defendant failed to meet their obligations under the contract, but they will also need to demonstrate that they suffered harm because of the breach. If a plaintiff proves that the defendant’s actions caused financial losses or other forms of harm, a court may award damages to the plaintiff. These damages may include:

• Compensatory damages - The defendant may be required to repay the plaintiff for the losses that occurred because of the breach of contract. These may include consequential damages that occurred as a direct result of the breach. For example, if the defendant failed to deliver equipment that the plaintiff had ordered, the defendant may be required to refund any payments made by the plaintiff, and they may also be required to pay for any additional expenses incurred as a result of ordering replacement equipment. A defendant may also be required to pay expectation damages for additional losses that arose because of the breach of contract. For example, the failure to provide equipment may have affected the plaintiff’s ability to perform certain types of work, causing them to lose business from a customer, and the defendant may be required to compensate the plaintiff for these losses.

• Liquidated damages - A contract may include terms stating that a certain amount of damages will be paid in the case of a breach. In these cases, if the plaintiff proves that a breach occurred, the defendant will usually be required to pay the amount of damages specified in the contract.

• Punitive damages - A court may order additional damages as punishment for wrongful behavior by a defendant. These types of damages are usually awarded in cases where a defendant committed fraud or violated the law in other ways.

In addition to or instead of monetary damages, a court may also order specific performance, which will require the defendant to carry out their obligations under a contract. A court may also order the cancellation of a contract, and the defendant may be required to pay restitution to the plaintiff, which will put the plaintiff in the position it was in before they entered into the contractual agreement.

Contact a Wheaton Breach of Contract Lawyer

If you have suffered losses because another person or company has failed to meet their contractual obligations, NN Legal Group can help you determine your legal options. We can provide you with representation in civil litigation, and we will work to make sure you receive compensation for the damages you have suffered. Contact our Villa Park civil litigation attorney at 630-474-0925 to set up a free consultation today.

Sources:

https://thebusinessprofessor.com/en_US/122296-law-transactions-amp-risk-management-commercial-law-contract-payments-security-interests-amp-bankruptcy/damages-in-a-breach-of-contract-action

https://www.thebalancesmb.com/breach-of-contract-398138