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Breach of Contract: What Remedies Are Available?

breach-contract.jpgBusinesses rely on other parties living up to their contract obligations. Unfortunately, sometimes the other party will fail to uphold their end of the bargain. Your business needs to be prepared to respond in this situation. California uses a complex combination of state statutes and common law to determine your possible remedies. If you have any questions about breach of contract remedies in California, please contact an experienced San Jose contract litigation attorney for immediate legal assistance.

Monetary Damages

In California, the primary remedies for a breach of a business contract involve financial compensation. There are several different categories of compensation that may be available in your case, including:

  • Direct damages: This type class of damages is meant to compensate you for your actual costs and losses;
  • Consequential damages: This includes damages that stem indirectly from the breach. For example, your business may be able to recover for profits that were lost due to breach of contract. Consequential damages must have been reasonably foreseeable at the time that the contract was signed;
  • Contract specified damages: In some contracts, there will be provisions that will allow for the recovery of additional damages in the event that a breach occurs. For example, your contract might allow for the full recovery of attorney's fees. Further, there might also be an express provision that allows for liquidated damages; and
  • Punitive damages: Finally, while relatively rare, it is sometimes possible to recover punitive damages for a breach of a business contract. This could occur if the other party has acted in an extremely egregious manner, and the court deems it necessary to punish that poor conduct to help prevent it in the future.

Injunctive Relief

While monetary damages are the primary form of relief for a breach of contract, in some cases compensation alone will not be enough. You may be able to get injunctive relief for your contract breach. This typically comes in one of three forms:

  • Specific performance: A California court may order that a party perform their end of the contract. Courts will avoid this type of relief whenever possible, but in some cases, specific performance may be necessary;
  • Recession: A court may respond to a breach by cancelling all other performance obligations associated with the contract; and
  • Reformation: Finally, in some cases, a court may work with the parties to determine that the best resolution involves restructuring the contract.

Need Legal Assistance?

If your company is involved in a contract dispute, you need an experienced advocate by your side. At Diemer, Whitman & Cardosi, LLP our experienced San Jose breach of contract attorneys will work aggressively to protect the rights of your business. If you are in Napa County, Contra Costa County, or anywhere else throughout the wider Bay Area, please do not hesitate to contact our San Jose office today to schedule a free initial consultation.



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