The basic types of damages and equitable remedies that may be available to address a contract breach include restitution, compensatory damages, liquidated damages, nominal damages, consequential damages, and punitive damages. Under restitution, a party that breaches the contractual agreement pays the other party because the latter is deemed to have been injured. Compensatory damages are awarded to the non-breaching party in a contract to cover losses incurred after a breach of a contract. The objective of this form of damages is to put the non-breaching party in the position it would have been if the agreement had fully been executed. In other words, it restores the benefit of a bargain. When parties to a contract agree to a certain amount of damages that should be paid in case of contractual breach, such damages are called liquidated damages. Nominal damages are paid when the breach of a contract does not result in any form of harm to the other party. Punitive damages are awarded when the breaching party has acted in a way that deserves punishment. Consequential damages arise from foreseeable circumstances outside the contract; for example, disclaimers in sales can be enforced as consequential damages.
Summarize the basic types of damages and equitable remedies that may be available to address a contract breach.
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Academic.Tips. 2022. "Summarize the basic types of damages and equitable remedies that may be available to address a contract breach." February 10, 2022. https://academic.tips/question/summarize-the-basic-types-of-damages-and-equitable-remedies-that-may-be-available-to-address-a-contract-breach/.
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