When someone breaks a contract, there are three main ways to fix the problem: damages, specific performance, and injunctions.
1. Damages:
This is the most common way to deal with a broken contract. It means getting money to cover the losses you suffered because of the breach. The goal is to make the person who was hurt feel like they would have if the contract had been kept. Here are the main types of damages:
Compensatory Damages: This type pays for the direct losses and money you missed out on.
Consequential Damages: This covers any indirect losses that happened because of the breach, like missed business chances.
Punitive Damages: These are rare in contract law. They are meant to punish someone for bad behavior.
2. Specific Performance:
This remedy forces the person who broke the contract to do what they promised. This is used when just giving money isn’t enough, especially in cases involving special items or property. In these situations, people want the actual item rather than money.
3. Injunctions:
Injunctions are orders from the court. They can tell someone to stop doing something (called a prohibitory injunction) or to start doing something (called a mandatory injunction). This remedy is often used to stop further problems or to keep things the same until a decision can be made in court.
Each of these remedies has a different purpose. They help address broken contracts and ensure fairness in business deals. Understanding how they work is important for anyone dealing with contract law.
When someone breaks a contract, there are three main ways to fix the problem: damages, specific performance, and injunctions.
1. Damages:
This is the most common way to deal with a broken contract. It means getting money to cover the losses you suffered because of the breach. The goal is to make the person who was hurt feel like they would have if the contract had been kept. Here are the main types of damages:
Compensatory Damages: This type pays for the direct losses and money you missed out on.
Consequential Damages: This covers any indirect losses that happened because of the breach, like missed business chances.
Punitive Damages: These are rare in contract law. They are meant to punish someone for bad behavior.
2. Specific Performance:
This remedy forces the person who broke the contract to do what they promised. This is used when just giving money isn’t enough, especially in cases involving special items or property. In these situations, people want the actual item rather than money.
3. Injunctions:
Injunctions are orders from the court. They can tell someone to stop doing something (called a prohibitory injunction) or to start doing something (called a mandatory injunction). This remedy is often used to stop further problems or to keep things the same until a decision can be made in court.
Each of these remedies has a different purpose. They help address broken contracts and ensure fairness in business deals. Understanding how they work is important for anyone dealing with contract law.