Remedies For Breach Of Contract Compensatory And Punitive Damages - 550 Words

Remedies For Breach Of Contract: Compensatory And Punitive Damages (Essay Sample) Content: Remedies for Breach of Contract Student’s Name Institutional Affiliation Remedies for Breach of Contract A breach of contract is the violation of the contract by failing to honor contractual obligations in accordance with the agreement. As a result, a breach happens when one of parties in the contract fails to meet his responsibilities as per the requirements of the agreement. Therefore, if one or more parties in a contractual relationship do not perform according to their binding agreement, the party that meets its obligations is entitled to take legal actions against the latter. This paper outlines some of the avenues used in relation to the breach of contract. In the events that a contract is breached, different legal actions can be taken by the non-breaching party. Legal actions depend on the type of contract as well as the amount of damages caused due to the failure of the breaching party to comply with the agreement CITATION Ewa17 \l 1033 (McKendrick, 2017). Compensatory damages is one of the most common remedies used to indemnify for the losses suffered for the breach of contract. Compensatory damages are subdivided into two major division consisting of the general and special damages. The purpose of the general damages is to compensate for the losses incurred directly as a result of the breach, such as refunds and reimbursement of expenses. On the other hand, special damages cover indirect loss suffered because of special conditions CITATION Min18 \l 1033 (Chen-Wishart, 2018). However, to obtain special damages, the plaintiff must prove that, the person he/she had a contractual relationship with knew the special conditions at the time a binding agreement between them was made. The punitive damage is also another avenue used by the plaintiff when seeking claim for a contract is violated. This type of damages is awarded to a wrongdoer who acted willingly and fraudulently to punish him or her and serve as an example to others CITATION Ewa17 \l 1033 (McKendrick, 2017). Contrary to compensatory remedy which seeks to reimburse for the losses incurred, punitive remedy is geared towards punishing the wrongdoers for their irresponsible behavior, and thus it’s designed to discourage other people from engaging in egregious activities. In most instances, the punitive remedy is predominately used in the case of tort to penalize wrongdoers for irresponsible behavior. Similarly, special performance is another vital platform of seeking compensation for losses incurred as a result of the violation of the contract. Special performance involves correcting the violation by forcing the breaching party to perform and fulfill his or her obligation as described in the agreement CITATION Ewa17 \l 1033 (McKendrick, 2017). Often, special performance is more prevalent in situations where compensatory damages could not be able to wholly cover for the losses incurred by the non-breaching party. Usually, the ruling for this type of remedy for breach of contract takes place especially when the subject matter of a contract is in dispute. Lastly, in the event of a breach of contract, the plaintiff may seek restitution to be reimburs...