Mulder Law | Damages for Breach of Contract
The potential damages for breach of contract depend on various factors, including the terms of the contract, the type of breach, and applicable laws. Here are some common types of damages that may be awarded for breach of contract:
Compensatory Damages: These are intended to compensate the non-breaching party for the losses directly resulting from the breach. Compensatory damages aim to place the non-breaching party in the position they would have been in had the contract been fulfilled. This may include financial losses, such as lost profits or the cost of mitigating the damages caused by the breach.
Consequential Damages: Also known as special damages, these are damages that do not directly flow from the breach itself but result indirectly from the breach. Consequential damages may include lost business opportunities, lost revenues, or other foreseeable losses that arise as a consequence of the breach.
Punitive Damages: In some cases, if the breach of contract involves willful misconduct, fraud, or egregious behavior, a court may award punitive damages. These damages are intended to punish the breaching party and deter similar conduct in the future, rather than compensate the non-breaching party for a specific loss.
Liquidated Damages: Some contracts include provisions specifying a predetermined amount of damages to be paid in the event of a breach. These are known as liquidated damages clauses. The purpose of such clauses is to provide certainty and avoid the need for lengthy litigation to determine the amount of damages.
Nominal Damages: In cases where the non-breaching party has suffered a breach of contract but has not incurred significant financial losses, a court may award nominal damages. Nominal damages are usually a small token amount, such as $1, and are awarded to acknowledge that a breach occurred.
Attorney Fees: Paying the othersides attorney fees and costs are not considered damages. However, they sure feel like damages if you have to pay them.
It's important to note that the availability and calculation of damages can vary based on the specific circumstances of each case and the governing law. If you believe you have suffered a breach of contract and are seeking damages, it's advisable to consult with a qualified attorney who can assess your situation and provide guidance tailored to your specific needs. Kyndra L Mulder, Esquire, can review your unique contract and discuss possible damages with you and your potential liablity.
