Contracts form the backbone of many business relationships. When a Detroit business owner wants to work with another entity as a contractor, employee, or vendor, they may execute a contract to ensure that both they and the other entity agree about the terms of their relationship. Contracts spell out expectations for parties and grant them remedies when they fail to perform as expected under their agreements.
When a contract is breached, a party can suffer significant damages and losses. Remedies offer them a means of becoming whole, or at least mitigating their losses, after a breach. This informational post will discuss some of the remedies Detroit businesses may include as options in their contracts, but readers are asked to review their own agreements to better understand what their specific remedies may be. This post does not provide any legal advice.
Understanding the breach
A contract may be breached when a party fails to perform as specified in their agreement. Not making payments, delivering goods late, or failing to produce at a specific level may all constitute breaches based on the terms of unique contracts. Contracts are based on offers, acceptances, and the exchange of consideration. When offers are not fulfilled or consideration is not exchanged, a breach may occur.
Remedies as a means of becoming whole
An injured party after a breach of contract may want to do whatever it must to stop losing money and prevent future losses from the fallout of the breach. Their remedy options can include, but are not limited to:
- Cancelation of the contract
- Restitution to make the aggrieved party whole
- Specific performance, or compelling the breaching party to perform under the contract
- Damages, or the payment of money to make a breach of contract victim whole
The types of remedies available to parties to breach of contract claims will vary and will depend on the terms of the specific agreements. Business and contract law attorneys can help individuals facing breach of contract losses understand their rights and possible remedies available to them under the operating agreements.