People sign contracts to bind both parties into doing what they say they are going to do. Contracts are very important for both companies and people who rely on them when making decisions and spending money. However, contracts themselves cannot force either side to fulfill their obligations in the contract.
People also cannot physically force people to fulfill their obligations. If the other side of a contract has a breach of contract, many times the only way to remedy the situation is for the non-breaching party to initiate a lawsuit against the other side.
Through these lawsuits the non-breaching party can request different remedies based on the circumstances.
Compensatory damages
One type of remedy is for compensatory damages. This remedy is designed to put the non-breaching party into the position they would have been in without the breach. The damages can include the money lost due to the breach as well as the cost for replacement services.
The non-breaching party may also receive liquidated damages. These damages are usually specifically stated in the contract itself if one of the parties breaches the contract.
Consequential damages
There are also consequential damages. These are damages the non-breaching party incurs with third-parties due to the breach of contract. If because of the breach the non-breaching party lost a larger contract or was forced to breach another contract as a result the breaching party may need to pay for those damages as well.
Other options
Other options include specific performance, which is forcing the breaching party to fulfill their obligations instead of just awarding the non-breaching party monetary damages. Another option is that the contract is simply rescinded and neither needs to follow it any longer.
Remedies for breach of contract in Florida
The potential remedies for breaches of contract in Florida depend on the type of breach. Ultimately the goal of any remedy though is to ensure the non-breaching party is put in a position they would have been in if the breach never occurred. Contracts can be difficult to understand sometimes and there may be gray areas. People need to understand all terms of the contract and understand the potential remedies available to them.
