Contract Remedies

Contract Remedies

Contract remedies are the legal means by which a party to a contract can enforce its rights under the contract or seek damages for breach of contract. The most common remedies for breach of contract are damages, specific performance, and rescission.

Damages are the most common remedy for breach of contract and are intended to put the injured party in the position they would have been in had the contract been performed. The measure of damages is typically the difference between the value of what was received and the value of what was expected to be received. In some cases, however, such as when a contract is for personal services or when unique property is involved, damages may not be an adequate remedy and specific performance may be ordered.

Specific performance is an equitable remedy that orders the breaching party to perform their contractual obligations. This remedy is only available when damages would not be an adequate remedy, such as when a contract is for personal services or when unique property is involved.

Rescission is a remedy that cancels the contractual obligations of both parties and restores them to the position they were in before the contract was formed. This remedy is typically used when one party has made a material misrepresentation or breached an essential term of the contract.