The non-monetary remedies in breach of contract lawsuits – read to learn what you need to know directly from an experienced attorney.
The Non-Monetary Remedies in Breach of Contract Lawsuits
Simply put, a breach of contract occurs when one of the parties to a legally binding contract fails to meet their agree-upon contractual obligations. Although most non-breaching parties choose to collect monetary awards from breaching parties, this is not always the best move, as there are better remedies that may be equally or even more beneficial, depending on the case.
Unfortunately, many business owners do not know that there are non-monetary remedies in breach of contract lawsuits. So, here is a list of the 3 most popular non-monetary remedies in breach of contract lawsuits, explained by a Florida business attorney:
1. Specific Performance
When a breach of contract occurs, generally the goal of the non-breaching party is to get back the money they lost due to the other party’s failure to meet their contractual obligations. However, collecting monetary awards from a breaching party often does little to achieve that. In a case where, for example, an independent contractor left work either poorly done or unfinished, it could be incredibly difficult to find another contractor who is willing to fix or finish someone else’s work because of the risk of exposing themselves to future liability issues.
In a case like this one, a court may find that forcing the breaching party to meet their original contractual obligations is the most appropriate and most beneficial remedy for the non-breaching party. This remedy is known as specific performance.
2. Rescission
Another one of the most popular non-monetary remedies in breach of contract lawsuits is recession. When a breach of contract occurs, a court may opt to try to bring the parties back to the position they were in prior to entering into the contract, or as close to it as possible. In other words, this remedy seeks to bring the parties to a position where they have not gained anything but also not lost anything, ideally. Essentially, this remedy obligates the parties to return the benefits they received as a result of the contractual relationship between them.
When a court settles a breach of contract lawsuit through rescission of the contract, it orders that no further legal action may be taken against the breaching party regarding the contract question. In a way, this remedy resolves disputes by taking disputing parties back to a time where their contractual relationship had not started yet and, therefore, a time where the dispute between them had not yet arisen.
3. Reformation
Sometimes, parties who have entered into a contract find a discrepancy between what they believed the terms of the contract to be and the terms that are actually written in the contract. In situations where this happens, a court might choose reformation as a remedy.
In essence, reformation allows a court to modify the wording of a contract when mistakes or ambiguous language are found or when the parties fail to understand the terms. In other words, the contract is rewritten to make sure it expresses what the parties are agreeing to in a clear and accurate manner.
Do you have questions about an existing contract? Do you require legal help in negotiating and/or drafting a new contract? If the answer to either or both of these questions is yes, then I can help you. Contact me today to schedule a consultation and learn more about my services.
Call me at (305) 921-0976 or email at [email protected]. I can create bulletproof contracts that protect your interests and suit your needs.
