Savvy business owners know that utilizing solid contracts is an ideal way to prevent breaches and other business agreement legal issues. Using simple language to detail the terms in a contract leaves little room for misunderstandings and accidental violations.
When a party you contract with violates the terms of the agreement, you should try to resolve the matter out of court. If your efforts fail, business litigation is usually the next step. If you win the case, you can acquire financial damages for the harm your business suffered due to the breach.
This remedy essentially returns you or your company to the state it was in before the breach occurred. For example, if you lost money because a supplier failed to deliver the prepaid goods you ordered, you may qualify for compensatory damages.
These are specific damage estimates outlined in many business contracts. They should be a reasonable and fair representation of your losses in circumstances where the actual damages suffered are hard to determine. This remedy may not return everything you lost, but it should
When a breach of contract occurs but you suffer little or no monetary loss, a court may award nominal damages in a small amount. Such a remedy can show other parties to a contract that they must abide by its terms or take a trip through the judicial system.
Although rarely awarded, punitive damages punish those who commit egregious contract violations. A win compensates you for the actual losses you suffered, plus extra money to hold the other party more accountable.
If you have suffered harm in a breach of contract, we suggest learning more about business litigation under California law.