What is the importance of damages in a breach of contract case? What are damages, and what do you need to know to protect your interests if you are a party to a breach of contract dispute? Can you recover damages from a breach of contract and which costs are you able to pass on to the breaching party?
Breach of Contract Cases are All About the Damages
Breach of contract cases are all about the damages. Damages is simply the legal term for the financial value of the impact that the breach of contract made upon your business. This can include missed opportunity and profits associated with another transaction that was based upon your vendor’s parts or services. It can include the cost of finding another party to fulfill the original “benefit of the bargain” anticipated in the contract that was breached.
It is important to note that you are responsible for doing everything prudent, reasonable and prompt to minimize the impact of the breach of contract upon your own business. This is known as mitigating the damages.
Pro-Tip: The Difference Between a “Minor Breach” and a “Material Breach” – “a minor breach means that you still have a contract. You still have an agreement and you can demand performance, or you can demand that you have to give less performance on the other side, but yet the contract isn’t completely breached and it’s not over. A material breach gives you more remedies, remedies that are important and may sound minor today.
But there’s been many a situation where having a material breach gives the party who was breached or damaged the right to rescind the contract or the right to specific performance, and forced the performance of the contract. All of these things have amazing consequences, if you look at factual situations in breach of contract law.” – Managing Partner, Dan Watkins
What are the genuine losses your company will bear as a result of the failure of the other party to fulfill the terms of the contract? What would you need to do to find another party to fulfill the original agreement? What steps do you need to take with your own customers, suppliers and/or employees to reduce the impact and resulting cost of the breach on your company?
If the party who is the victim of a breach of contract does not take prompt and prudent action to mitigate their losses, the breaching party has the legal opportunity to reduce or eliminate all financial liability associated with the contract breach. We work with our clients to mitigate their losses while maximizing the opportunity for them to recover damages from a breach of contract.
Defending a Breach of Contract Case
What if you are the party responsible for the contract breach? Are there steps that should be taken when you or your company are faced with the possibility of an inability to perform on or fulfill a contract? Should you consider notifying the other party or parties to the contract? Each situation is unique and this is why it is important to consult with your Watkins Firm breach of contract attorney. We have served the San Diego and California business community for more than 40 years. We provide sound counsel and a unique approach to business contract and dispute resolution.
There are proven, effective strategies for defending a breach of contract case. Was there any element of fraud, coercion or misrepresentation on the part of the other party? Is the contract itself a sound and enforceable business contract?
If you are involved in a breach of contract we invite you to review our podcast Episode 5 – Breach of Contract as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
We will help you to understand your legal position, document all damages, and implement a strategy that has the greatest opportunity to resolve the breach of contract dispute and recover the losses you have borne.
