Money Damages for Breach of Contract
Money Damages for Orlando Breach of Contract
Compensatory Damages: These breach of contract damages are designed to compensate the non-breaching party for losses that directly result from the breach. The purpose of compensatory damages is to put the injured party in the same position he would have occupied had the contract been fully performed. The theory is that the non-breaching party should be “made whole again.” This is the most common breach of contract remedy.
Consequential Damages: These breach of contract damages are intended to reimburse the non-breaching party for indirect damages other than contractual loss; for example, loss of business profits due to an undelivered machine. In order to recover, the injuries must “flow from the breach,” i.e., be a direct result of the breach, and be reasonably foreseeable to both parties when they entered into the contract.
Liquidated Damages: These breach of contract damages are specifically described and included in the contract. Liquidated damages are only available when the amount of actual damages is very difficult or impossible to calculate. For example, liquidated damages may be used to calculate damages for late performance of a construction contract (i.e. $500 per day damages for every day late).
Restitution Damages: The purpose of restitution as breach of contract damages is to require the breaching party to restore the innocent party to as good a position as he occupied before the contract was made. In other words, the non-breaching party has to pay back the money or the value of the services it accepted. The non-breaching party is permitted to consider the contract as terminated, and can receive payment to reimburse her for the costs paid out in reliance on the other party’s performance.
Punitive Damages: These damages are intended to punish the breaching party and to deter him or her from committing any further breaches. Punitive damages are almost never awarded in contract cases, but they may be available in some fraud or business tort cases that overlap with contract law.