In the business world, it is extremely rare for any single entity to perform all the functions that it needs to get by and create value for its customers and shareholders. More often than not, tasks are broken down and the pieces are delegated to various other business entities.
To ensure that the much-needed outputs are delivered on time and in the required quality, contracts are drafted. The parties involved meet and discuss the specifics of the deal. They ideally put everything on record, from the payment amounts down to the quality of the subject service and/or product.
However, there are times when the terms in the contract become difficult for one party to meet. There are a lot of reasons for this. The breaching party might be losing money already. They might just be losing focus. Or they are just being negligent. If you happen to be disadvantaged by another party’s inability to comply with the stipulations in your business contract, we present here some of the legal remedies that you can ask from the courts.
Specific Performance
Before we talk about monetary compensation, let’s tackle first the possibility of just asking the court to use its muscle to force the other party to deliver. This is exactly what happens when you file a specific performance prayer before the courts. This type of remedy is reserved for deals where you will be on the losing end if you drop your current contractor to look for another one. Remember, there are services and products that only certain companies have mastery over. The contract will help you protect your interest in this case.
Compensatory Damages
The aggrieved parties in a breach of contract dispute most commonly ask for compensatory damages. This means that they will ask the court to make the erring party pay the aggrieved party the amount that they (the aggrieved) would have earned had the contract been honored until completion. Often, the compensation amount is already stipulated in the contract so the court wouldn’t have that much of problem determining exactly how much the compensation will be.
Punitive Damages
When a court asks the erring party to pay punitive damages, this means that the court has found enough reason of willful wrongdoing on the part of the erring party. The case is not merely about an inability to deliver, it’s one that involves deliberate attempts to shake up the process enshrined in the contract. As the term suggests, this type of payment is meant to punish the erring party so that other business entities will not follow their example.
Now, even if you know what types of legal remedies you should be asking from the courts, it is still important for you to get the help of good business lawyers such as those from Surrey-based McQuarrie. They should be with you from the moment that you draft the contract up to the actual signing, and especially when a breach of contract case arises. They will help you protect your interests in the legal terrain where the devil truly resides in the details.
