What Kinds of Damages Are Normally Awarded for Breach of Contract

When a breach of contract occurs, there are several types of damages that may be awarded to the injured party. These damages are designed to compensate the injured party for any losses or harm that resulted from the breach of contract.

1. Compensatory damages: These damages are awarded to compensate the injured party for any losses suffered as a result of the breach. This could include direct losses such as lost profits or indirect losses such as harm to reputation.

2. Consequential damages: Also known as special damages, these are awarded to compensate the injured party for any losses that were foreseeable at the time the contract was formed but are not directly related to the breach. For example, if a supplier fails to deliver goods on time, the buyer may lose a major contract and suffer consequential damages.

3. Liquidated damages: These are damages that are agreed upon by both parties in advance of any breach occurring. The amount of damages is typically set out in the contract and is designed to provide a pre-determined remedy in the event of a breach.

4. Punitive damages: These are awarded to punish the breaching party for any intentional or reckless conduct. These damages are typically awarded in cases where the breach was particularly egregious.

5. Nominal damages: These damages are awarded when the court finds that a breach of contract occurred but the injured party did not suffer any actual harm. The award is usually a small amount, such as $1, and is intended to vindicate the injured party`s rights.

In conclusion, damages awarded for breach of contract can vary widely depending on the nature of the breach and the losses suffered by the injured party. It is important to seek legal advice to determine the appropriate type and amount of damages to pursue in any given situation.