How Businesses Can Resolve Breaches of Contract
April 23, 2021
There are many businesses in Houston. These businesses produce many different products and provide many different services both locally and around the world. While the products and services may differ, there are many aspects of running a business that these companies share. One is that they need to work with other companies in order to run their business. Companies may need to buy parts from other companies to complete their own products or buy services to help with aspects of the business they do not have time to attend to themselves.
When working with these other companies, they need to be able to rely on these other companies. To help ensure that everyone fulfills what say they will do, companies need to have well written contracts that state the obligations of each company. Contracts are also important because they allow companies to hold another company accountable if they do not fulfill their obligations under the contract. When companies do this it is known as a breach of contract and the non-breaching company may have remedies available when it occurs.
Potential Remedies for A Breach of Contract
One type of remedy that non-breaching companies may have is compensatory damages. This is monetary compensation, which the company may have loss or were owed as a result of the breach of contract. This is the most common remedy for a breach of contract. Another type of monetary remedy is punitive damages. These are not as common, but are additional monetary damages specifically to punish the breaching company.
Companies may also have equitable remedies. One is specific performance. This orders the breaching company to perform the terms of the contract. Another is the opposite, which is cancellation of the contract, which releases both parties the obligations under the contract.
There are many contracts that businesses in Houston enter into that help them run their business. These contracts are very important and valuable to the company. When there are breaches of the contracts though, they can create major problems and cost companies significant amounts of money. There are potential remedies available to the non-breaching companies though and consulting with experienced attorneys could be helpful.