Four Types of Damages Available in a Breach of Contract - Pence Law Firm, PC (2024)

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Four Types of Damages Available in a Breach of Contract - Pence Law Firm, PC? ›

Are you wondering about seeking damages for breach of contract? There are five important types of damages that might be available, depending on your situation: compensatory damages, specific performance, an injunction, liquidated damages, or rescission.

Are you wondering about seeking damages for breach of contract? There are five important types of damages that might be available, depending on your situation: compensatory damages, specific performance, an injunction, liquidated damages, or rescission.

In each scenario, you're clearly the victim of an obviously broken contract, but the tricky part is determining what type if contract breach occurred and what remedies are legally available to you. Generally speaking, there are four types of contract breaches: anticipatory, actual, minor and material.

These types of lawsuits are common in business litigation. There are four elements of a breach of contract claim: a valid contract, performance, breach, and damages.

Section 73 states- “When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when ...

A negligence claim requires that the person bringing the claim (the plaintiff) establish four distinct elements: duty of care, breach, causation, and damages.

What are the four judicial remedies for contract breach? ›

There are several remedies for breach of contract, such as award of damages, specific performance, rescission, andrestitution.

The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

You cannot bring a breach of contract claim merely because the other party has failed to perform; you must have suffered loss as a result. The type of loss you have incurred must have been a foreseeable consequence of the subsequent breach at the time you made the contract. You are under a duty to mitigate any loss.

There are six different types of damages: compensatory, incidental, consequential, nominal, liquidated, and (sometimes) punitive.

The two main categories of damages in contract law are restitutionary damages and expectation damages.

The general rule is that damages are meant to place the claimant in the same position as if the contract had been performed. Damages are usually awarded for expectation loss (loss of a bargain) or reliance loss (wasted expenditure).

In contract law, special damages (also called consequential damages) refer to irregular damages such as physical injuries during a breach of contract, but general damages would refer to the damages expected from the contract being breached.