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Remedies for a breach of contract

Business contracts are legally enforceable agreements that help businesses run smoothly. Creating and using contracts during transactions is a smart way to go, especially when disputes happen regularly.

A breach of contract happens when one person accuses another of failing to follow the terms of an agreement. While courts and lawsuits are not the only options, listed below are a few of the main remedies for a breach of contract.


Money damages is the most common solution for a breach of contract. This type of remedy goes through the court. Usually whoever breached the contract is ordered to pay the other party. The amount of compensation depends on what you paid, and additionally, what you would pay with a contract elsewhere.

Special performance

Another common remedy is known as special performance. This also goes through the court. The person who breached the contract is essentially forced to execute whatever was promised. Therefore, they need to either perform the service or deliver the goods. The remedy is used for unique cases, in which the service or goods can't be found elsewhere.

Cancellation or restitution

The court might decide to cancel a contract altogether. On the other hand, the court might order restitution, which means the person who broke the contract has to pay the other party back, nothing more and nothing less.

Enforced contracts are important to businesses, contractors and customers. It holds parties to their word, even if their intentions show differently. The remedies listed above are only a few options that handle breaches in a contract. Before taking legal action, it's important to thoroughly go over the contract and consult with an experienced litigation attorney.

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Fox & Moghul 3871 Plaza Drive Fairfax, VA 22030 Phone: 571-295-4026 Fax: 866-451-9531 Map & Directions