Contracts Remedies

Contracts Remedies

If a company sends a product back to another company for repair and that said product is

not returned in the specified time that was identified, then is that company compensated for lose

of profit due to the late return. I will discuss a few remedies that fall under this topic. There are

several remedies for breach of contract, such as award of damages, specific performance,

rescission, and restitution. In courts of limited jurisdiction, the main remedy is an award of

damages. Because specific performance and rescission are equitable remedies that do not fall

within the jurisdiction of the courts. There are two categories of damages that may be

awarded if a breach of contract claim is proved, they are Compensatory Damages and Punitive

Damages.

Compensatory Damages cover the loss the non-breaching party incurred as a result of the

breach of contract. The amount awarded is intended to make good or replace the loss caused by

the breach. There are two kinds of compensatory damages that the non-breaching party may be

entitled to recover, General Damages and Special Damages. General Damages cover the loss

directly and necessarily incurred by the breach of contract. General damages are the most

common type of damages awarded for breaches of contract. Special Damages cover any loss

incurred by the breach of contract because of special circumstances or conditions that are not

ordinarily predictable. These are actual losses caused by the breach, but not in a direct and

immediate way. To obtain damages for this type of loss, the non-breaching party must prove that

the breaching party knew of the special circumstances or requirements at the time the contract

was made. The standard measure of damages is an amount that would allow the non-breaching

party to buy a substitute for the benefit that would have been received if the contract had been

performed. In cases where the cost of the substitute is...