It’s essential to note that there are no punitive damages for contractual remedies, and the non-breaching party may not be awarded more than the expectancy (the monetary value of the contract had it been fully performed).
Damages Calculation
Calculating damages in contract disputes involves determining the losses incurred by the non-breaching party. The most common method is to calculate the expectation damages, which is the amount necessary to put the injured party in the position they would have been in had the contract been fulfilled.
Other types of damages include consequential damages, which are indirect losses resulting from the breach, and liquidated damages, which are predetermined amounts specified in the contract.
Alternative Dispute Resolution Options
Not all contract disputes need to end in litigation. Alternative Dispute Resolution (ADR) methods offer a way to resolve conflicts without going to court. Common ADR methods include:
- Mediation: A neutral third party facilitates a negotiation between the disputing parties.
- Arbitration: A neutral third party makes a binding decision after hearing both sides.
- Negotiation: Direct discussions between the parties to settle.
ADR can be more cost-effective and faster than litigation, preserving business relationships and providing more control over the outcome. Effective ADR provisions in contracts can establish clear procedures and expectations for resolving disputes.
Professional Help: When to Consult an Attorney
Navigating the intricacies of contract law can be challenging, and there are times when consulting an attorney is the best course of action. Contracts are a crucial part of business and personal transactions, and having the right legal guidance can make a significant difference in their outcome.
