What could happen if a contract is breached

On Behalf of | Feb 27, 2020 | Business Disputes |

In a perfect world, parties who sign a contract in Pennsylvania would adhere to the terms of that deal. However, it is not uncommon for disputes to arise after a pact has been made. If a party to a deal is in breach of contract, the victim of the breach could be entitled to financial or other relief.

What is a breach of contract?

A breach of contract occurs when one party to the agreement fails to provide a good or perform a service on time. In some cases, a good or service won’t be delivered at all. A breach can be considered either material or immaterial, and the type of breach that occurs will largely determine what type of remedy a victim can pursue.

Financial damages might not be enough

If financial damages don’t adequately make up for a breach of contract, the party that breached the deal could be compelled to follow through on its obligations. A specific performance remedy may be used when a cash payment wouldn’t put the breached party in an adequate position.

The financial remedies a party might pursue

In the the event that a financial remedy would suffice, there are multiple types of damages that a party could pursue. For instance, it may be possible to obtain nominal compensation in the event that the breach didn’t result in a financial loss. In addition to actual damages, punitive damages may be assessed in an effort to punish the breaching party for its actions.

The contract could be cancelled

In some cases, the victim of the breach of contract could opt to terminate the deal. In such a scenario, the breaching party would pay restitution to the party that was wronged in some way. Once the contract is terminated, neither party has any future obligation to the other.

If you are involved in a contract dispute, it may be worthwhile to speak with a civil litigation attorney. Doing so may make it possible to learn more about your rights and how to resolve the situation in a favorable manner.