All business activities in Texas are regulated by contracts. Contracts outline the rights and obligations of all parties. For the most part, the terms of a contract are honored and business goes smoothly. Unfortunately, that isn’t always the case.
Contracts can be breached, and this can have significant consequences for businesses. What can you do if your contract has been breached? What legal remedies are available?
Compensatory damages
One of the most common legal remedies for breach of contract is compensatory damages. These aim to cover your losses resulting from the breach. Generally, compensatory damages aim to place you in the position you would have been in had the breach not occurred.
Specific performance
In some cases, specific performance may be the best remedy. This is a court order that makes the breaching party fulfil their initial obligations. For example, if you ordered renovations to your building, the construction company would have to complete the renovations as initially agreed.
Nonetheless, specific performance can be tricky when the relationship between the parties has broken down completely. That’s why this remedy is not as common as compensatory damages.
Rescission
In some cases, it may be best for the contract to be cancelled altogether. This is known as rescinding the contract. Rescission relieves all parties from their obligations and aims to restore each party to the position they were in before the contract was formed.
Breach of contract disputes can be frustrating and costly. You have a right not to incur financial costs resulting from a breached agreement. To find the most efficient solution, it helps to have legal guidance.