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What does breach of contract entitle you to?

by | Sep 16, 2019 | Business Litigation |

If your business in Daytona Beach primarily works contractually, then having a partner try to end an agreement with you prematurely can be devastating to your operations. If its abrupt termination of your agreement meets the legal standard for breach of contract, then you may be entitled to compensation. The question then becomes what exactly your company might be entitled to in such an action.

Per the Judicial Education Center, there are two primary types of damages that you can seek in a lawsuit for breach of contract: compensatory and punitive. Compensatory damages themselves can be further broken down into two categories. The first is general damages. These are to compensate for the direct losses that you can trace back to the termination of the contract. These can include the cost for any work that your company had already done or any funds that your company paid your now-former partner for goods or services that now must be returned or redone.

The second type of compensatory damages are special or consequential damages. These are losses that you incur as a consequence of the contract ending, such as money you paid to procure resources that you anticipated being used to fulfill your contractual obligations.

Punitive damages are meant to punish your former partner for its conduct in ending your agreement. To collect punitive damages, you typically need to prove malicious or fraudulent intent on their part. An example of this would be evidence that suggests that your former partner operated in bad faith in negotiating its contract with you, and that it never had the intention of fulfilling the agreement.

 

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