Contracts form the backbone of many business dealings in Staten Island. So, when a contract is breached, the aggrieved party may be put in a very precarious financial bind. In such situations, the aggrieved party may want to pursue a breach of contract claim. The following is an overview of the types of financial damages that may be sought in such cases.
Compensatory damages
Compensatory damages are common in successful breach of contract claims. Compensatory damages put the aggrieved party in the financial position they would be in if the contract had been fulfilled.
Punitive damages
Sometimes, compensatory damages are not much to make the aggrieved party whole again. If the breaching party committed a particularly wrongful act, it may be necessary for them to pay the aggrieved party damages above and beyond what they agreed to in the initial contract. Punitive damages are rare in breach of contract cases.
Nominal damages
In some circumstances, the contract was breached but the aggrieved party did not incur an actual financial loss. If so, the aggrieved party might be awarded nominal — a small amount — of damages.
Liquidated damages
Sometimes the contract itself has provisions the parties agreed upon on what to do if the contract is breached. Awards of damages outlined in the contract itself are known as liquidated damages. To be enforceable, these damages must be reasonable in light of the actual damages that may be awarded if the contract was breached.
Those pursuing damages in a breach of contract case can seek help
This post only gives a brief overview of the financial damages that may be awarded in a breach of contract claim and it does not contain legal advice pertinent to any specific situation, nor can it promise any certain outcome in such a case. Those in New York who want more information on financial damages in a breach of contract case can seek professional advice.