Where a party to contracts has failed to honour its contractual obligations, there are two types of remedies available to the aggrieved party: damages and specific performance.
(I) Specific Performance
Specific performance is a remedy where, in certain circumstances, a court will order a party to a contract to perform as promised under the contract. A court will only order specific performance in favour of an aggrieved party in exceptional cases, and where an award for damages would not be adequate. With breach of land contracts, however, specific performance is the preferred remedy.
More commonly, a party will seek damages, in the form of monetary compensation, as a remedy for breach of contract. Damages are an attempt by the court to compensate the innocent party to the contract, rather than to punish the party responsible for the breach. In rare cases, however, courts have granted aggravated and punitive damages for a breach of contract. Damages are typically calculated in two ways:
If you have any questions about damages pertaining to a contractual matter, please feel free to contact us. After reviewing a contract, and obtaining the circumstances surrounding an alleged breach of contract, we can give you an opinion on the strengths of your legal claim, and an estimation of the damage award to which you may be entitled.