First Principles of Business Law

Remedies for breach of contract

3. An award of damages

3.1. Monetary compensation for loss

 

 

 

'Damages' means a sum of money paid to compensate someone for a loss they have suffered. If one party to a contract fails to perform as promised, and the breach of contract causes the non-defaulting party to suffer loss, the non-defaulting party may be able to claim damages on grounds of breach of contract.

An award of damages is the ordinary remedy for breach of contract. It is available for any breach of contract that causes loss. This includes losses flowing from a breach of warranty, a breach of condition, or a breach of an innominate term. Damages can be claimed for a breach in the form of non-performance, partial performance, substantial performance, defective performance, late performance, or following termination of performance on grounds of anticipatory breach. 

The examples that follow show how to identify the different types of loss that can result from a breach of contract and to what extent damages will be awarded to compensate for this loss.

 

 

 

 

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