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How can companies remedy a breach of contract?

On Behalf of | Nov 5, 2021 | Contract Disputes

Businesses in New York generally cannot conduct business without relying on other companies and individuals to provide products and services to them. For example, a company may need a certain part in order to complete their product that only another company produces. They may need phone and internet services, attorneys, accountants and others to help with their business. They also need customers to purchase their product and services in order to earn income for their business.

Due to reliance on others, companies may also need contracts to state specifically what is expected from each party. Companies rely on these contracts and rely on the other side to fulfill their obligations. When the other side does not fully perform their required duties, it can create real problems. It may force one of the companies to miss shipping orders or provide adequate services for their customers, which can affect them economically and harm their reputation.

Some possible remedies

When companies do not perform what they are required do under a contract, it can lead to breach of contract claims. Generally, companies can seek certain remedies for a breach of contract. These remedies can include:

  • Compensatory damages – this is the money that the company has to pay another company because of the breach.
  • Restitution – the company would receive the money they already paid to the breaching party.
  • Liquidated damages – these are usually amounts that are specifically stated in the contract if one party breaches the contract.
  • Specific performance – this would force the breaching party to provide the goods or services they were suppose to provide through the contract
  • Cancellation – the contract could be voided relieving both sides from any obligations in the contract.

Contracts are very important to companies in New York. They need to be able to rely on other companies and individuals. If there is a breach of contract, the company may need to bring a lawsuit against the breaching company to be compensated appropriately. Experienced attorneys understand these types of cases and can be a valuable resource.