Many business lawsuits relate to contractual issues. Businesses negotiate a variety of different types of contracts, which they then use to manage their operations or protect their intellectual property. If one party to a contract fails to fulfill their obligations or blatantly violates the terms of the agreement, the other party may need to consider taking legal action.
A breach of contract lawsuit provides an opportunity for businesses to address contract issues. Judges review the contract itself and the alleged breach that occurred. They can then offer different forms of relief to the plaintiff bringing the lawsuit. There are many different solutions to contract breaches that plaintiffs can request when initiating litigation.
Contract rescission
One party’s breach of a business arrangement can be a learning experience. It may become quite clear that the other party is not capable of fulfilling their contractual obligations. The dispute related to the breach could also damage the working relationship between the two parties. Contract rescission involves a judge essentially invalidating or terminating the arrangement between the parties. Terminating the working arrangements can be the best solution in some cases.
Actual damages
Judges have the authority to award damages in civil lawsuit scenarios. When the actions or defaults of one party cause verifiable harm to another, the affected party can ask the courts to award them damages. Disruptions to business operations, expenses related to finding alternate services and a host of other financial losses can contribute to the total value of damages sought in a breach of contract lawsuit.
Contract enforcement
Judges have the authority to order specific performance. They can demand that the party in breach of the contract fulfill their obligations. They can also issue injunctions intended to uphold the terms of the initial contract or prevent additional breaches from occurring. In scenarios where finding a new vendor or service provider proves prohibitively difficult, judges can enforce the terms of the contract. The courts can order the delivery of materials or require that service providers redo work that did not meet contractual standards.
Reviewing a breach that has occurred can help plaintiffs determine how they want to respond to a situation involving a contract breach. Requesting appropriate solutions can help businesses limit the long-term negative impact triggered by contract violations.