creighton Mclean & shea PLC attorneys at law

What are some common remedies for breach of contract?

On Behalf of | Aug 4, 2020 | Firm News |

Contracts form the backbone of most business dealings in the Livonia area. Both parties to a contract stand to gain something in some way, but that does not mean they will always follow through with their agreed-upon obligations. When this happens, it is important for the aggrieved party to understand what remedies they may have at their disposal. Keep in mind this post is for informational purposes only and does not advise on what remedy to pursue in any specific case.

Monetary damages

Some remedies for breach of contract are monetary in nature. This may include compensatory damages in which the breaching party has to pay the other party what they were promised under the contract itself.

Another type of monetary damages is restitution. Paying restitution means paying the aggrieved party back for any performance they already made under the contract.

A third type of monetary damages is punitive damages. These are meant to punish the breaching party. However, for punitive damages to be awarded, in general the breaching party must have done something reprehensible.

A fourth type of monetary damages is “quantum meruit,” a legal way of saying “as much as he deserved.” If ordered to pay quantum meruit damages, the breaching party must pay the aggrieved party what they deserve for work completed before the breach.

Finally, there are liquidated damages. These are damages that are agreed upon beforehand and can be found in the terms of the contract itself.

Non-monetary damages

Other types of damages for breach of contract are non-monetary in nature. One of these is cancellation. Cancellation damages mean that the contract is deemed void and neither party needs to perform what they previously agreed upon.

Another type of non-monetary damages is specific performance. This means the court will order the breaching party to perform what they agreed upon in the contract. Specific performance is generally awarded if the promise agreed upon in the contract is unique and cannot be satisfied by other types of remedies.

Every case is unique

Just like every contract is unique, so is the type of remedy that may be pursued. Whether one pursues monetary or non-monetary damages, it is important to understand what will be gained if their pursuit is successful. Attorneys in Michigan may be a useful resource when a contract is breached.



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14881 Farmington Road
| Livonia, MI 48154

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