Contracts are an important foundation in American life. This is especially true in the business world. When one party to a contract violates the agreed-upon terms, this is known as breach of contract. Minnesota companies should know what remedies are available to them if they find themselves in a situation where a contract has been breached
Understanding breach of contract
Contract disputes can be anxiety-provoking and time-consuming. If a valid contract has been breached, you can pursue a civil case. There are a lot of rules and regulations about contracts. A valid contract needs to show consideration for both parties involved. If the contract is about work being done, it may be subject to state employment laws. In some places, for example, commission-only contracts for some workers are not valid. There must also be base pay. This depends on state law.
If the contract is valid, the party that was impacted by the breach can seek different kinds of damages. Compensatory damages are monies provided to the injured party to compensate them for a loss. There are three main types of compensatory damages: general, special and punitive.
General damages repay the loss directly related to the breach. Special damages may be awarded if there was an unusual effect like an additional loss caused by the breach. Punitive damages are the least common type of award. They are used to make an example of a party who was such a bad actor that the judge wants to make an example of them.
If you’re dealing with a breach of contract, it’s important to get advice from a skilled lawyer. An attorney who has experience with contract disputes may be able to assist you in knowing what damages to pursue.