Breach of contract scenarios are very frustrating for those who help operate businesses. Factors that should be predictable, including vendor deliveries and construction projects, can suddenly become a source of confusion and operational disruptions.
Occasionally, parties who breach contracts do so unintentionally. Confusion about expectations or a lack of communication may have triggered the breach of contract. After receiving notice of the breach, the other party might earnestly try to resolve the issue.
Other times, breach of contract issues can be more difficult to resolve. The other party may deny that they violated the agreement or may refuse to correct the issue. In such cases, litigation may be necessary. What remedies do the courts offer for organizations impacted by such contract issues?
Rescission
Civil court judges have the authority to essentially avoid or invalidate a contract. In scenarios where one party has failed to fulfill their obligations, the judge can order rescission and effectively eliminate the responsibilities of both parties under the contract. Rescission can be beneficial in scenarios where the contract breach has caused a trust issue that could prevent the parties from working together successfully in the future.
An award of damages
Contract breaches can cause a host of expenses. They can force one party to obtain materials or services at far higher prices because they don’t have time to comparison shop. They can trigger penalty clauses in other contracts because one party cannot fulfill its obligations to others. Contract breaches can also disrupt operations, which can cause a cascade of expenses. Those with proof of the economic impact that a breach of contract caused can ask a judge to award them damages.
Orders of specific performance
Judges can remedy the harm caused in a breach of contract scenario with an order of specific performance. Specific performance might result in one company delivering materials they previously failed to ship. The order might require that a service provider fulfill their contract by completing certain actions. Judges can even order one party to redo work previously performed if it did not meet contractual standards.
All of these remedies can be valuable for companies negatively impacted by a breach of contract. Initiating litigation is sometimes the only way to demand accountability from a business or professional who has failed to fulfill contractual obligations.