When contracts are breached, it typically means that money has been lost. Due to the loss, it should not be surprising that the most common form of remedy in contract disputes is financially focused. However, those in Georgia may be interested in the various types of remedies awarded when a contract is breached.
Generally, there are about six types of monetary remedies that may be awarded following a successful breach contract claim. First, and probably the most well-known, are compensatory damages. This type of award is meant to compensate plaintiffs for what they had to pay another party when a contracted good or service wasn’t delivered as agreed. Secondly, punitive damages could also be awarded in addition to compensatory damages. The amount of these awards typically reflect a determination that the defendant behaved in a way that deserves punishment, such as knowingly selling substandard goods.
Third, a plaintiff could be awarded liquidated damages, which are usually stipulated in the contract as being what either party will pay if the agreement is breached. Fourth is restitution, which is the restoring of something to its rightful owner. For example, if a plaintiff paid $100 for a service that was not delivered, restitution would require the defendant to pay that money back.
Fifth is Quantum Meruit, which is when one party pays the other an amount equal to what they deserve for work done before a contract breach. And finally, the sixth common remedy is nominal damages. This is awarded by the justice system when no true financial loss occurred, yet, a wrong was committed.
Finding the right remedy for contract disputes depends on the details of the breach of contract. Most in Georgia choose to consult with a business law attorney to discuss the details of their situations. An experience attorney will be able to discuss the various legal options and remedies available.
Source: FindLaw, “What Is the Most Common Legal Remedy for a Breach of Contract?“, Accessed on Nov. 17, 2016