If you were involved in a deal with another company and they failed to uphold their end of the agreement, you may be considering filing a breach of contract lawsuit as a result. However, if you're not familiar with the laws and the way that these cases are handled in court, you may wonder what it can actually do for you in the long run. Here are a few of the types of damages that you may be able to recoup if you file a lawsuit for commercial breach of contract.
Basic Restitution
The first thing that you might be eligible for is basic restitution. This will essentially allow you to recoup the financial investment you have in the contract itself. The company that is deemed to be in breach of the contract will have to pay that money back to you, so it will financially be as though the agreement never even happened. This allows you to use that money as an investment with another company to complete the task at hand.
Compensatory Damages
Another form of restitution that may be ordered as a result of your breach of contract suit is compensatory damages. If the delay that is caused by the breach and your need to seek another company's services costs your business money, compensatory damages will help to offset that loss as well.
The working theory is that you would not have lost that money if the other party had held up their end of the contract, so they become legally obligated to offset that loss for your business. This isn't awarded in every case, and it is up to the judge's discretion, but you can discuss the possibility with your commercial litigation attorney.
Punitive Damages
Punitive damages are usually awarded in cases as a form of punishment to the guilty party. This type of damage award is uncommon in breach of contract suits, but it is possible to receive. Typically, a judge will only award punitive damages if it is found that the other party acted in a manner that was especially irresponsible and heinous. However, if this was the case, you may receive an additional award simply because of those actions.
The more you understand about the potential compensation from a breach of contract lawsuit, the easier it is to see why you should never ignore an action like this from another business. Talk with a business litigation attorney today for more information and to see if you have a case.
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