What the remedies in the event of a breach of contract?
A contracting party is entitled to damages if the other party breaches a contract. Generally, damages are the sum of money necessary to put a party in the same or equivalent financial position as the party would have been had the contract been performed. A party may recover compensatory damages for any actual loss that the party can prove with reasonable certainty. Compensatory damages include direct damages and consequential damages. An example of direct damages would be in a situation where the plaintiff has paid $10,000.00 for a truck, but the defendant refuses to deliver the truck. The direct damages would be $10,000.00. Consequential damages would arise in a situation where the failure to deliver the truck harmed the business of the plaintiff since the plaintiff lost a delivery contract. In this situation, the plaintiff could possibly get consequential damages for loss of the delivery contract. Punitive damages are designed to punish. A Court uses punitive damages to make an exam
