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Breach of Contract

When one party to a contract fails or refuses to fulfill his or her obligations under the contract without legal excuse, this is considered a breach of contract.



The Remedies available in the event of breach of contract include

  1. Damages – the most common remedy for breach of contract, damages are a sum of money to compensate the injured party.
  2. Specific Performance – In some cases simply awarding a sum of money might not be enough to compensate the injured party, and equitable remedy specific performance might be awarded to require the party at fault to perform his or her obligations under the contract.
  3. Injunctions – another equitable remedy, injunction can either prohibit a party from doing something or compel certain actions.
  4. Rescission – this type or remedy is both common law and equitable remedy, the purpose is to put all parties in their original positions had the contract never been made.
  5. Discharge – an injured party may choose to treat a contract as having been discharged because of failure of the other party to perform its obligations.
  6. Quantum meruit – The injured party is entitled to payment for work performed based on reasonable prices even if prices were not discussed or only park of the work is completed.
  7. Substantial performance – same as Quantum meruit but it might be available to the party which repudiates (renounces or rejects an obligation) a contract.