We have written about contract disputes in the past on this blog. A couple of months ago, we wrote a post about FOX and Verizon FiOS settling a contract dispute, one that could have a dramatic impact on the reputations of the companies involved. Contract disputes like this area often settled out of court, but many still make it to court. Breach of contract issues often go before a judge who ultimately determines how the case will be handled going forward.
So what ruling would a judge make to fix a breach of contract? There are many different ways to remedy the situation:
- Money is often a driving force in these decisions, so it is no surprise that two of the most common rulings that a judge makes is for compensatory damages or restitution to be involved. These rulings dictate that the breaching company must pay the victimized party (or parties) to remedy the situation.
- If the case involved circumstances that could be described as “morally dubious” (such as passing along defective or dangerous products), then punitive damages could be awarded.
- When the companies involved in the dispute have provisions in the contract that stipulate payments in case of a breach, then these are called liquidated damages. Nominal damages would be paid in cases where a breach occurs but no party suffers for it.
- A judge could also use “remedies in equity,” which include cancelling the contract or forcing the breaching party to fulfill their obligations as outlined in the contract.
Source: FindLaw, “What Is the Most Common Legal Remedy for a Breach of Contract?,” Accessed March 31, 2017