Though you may hope that you will have the ability to run your business without any major hiccups, most business owners like yourself typically face some difficulties. Many of those challenges may have relatively simple resolutions, and others may need significant attention. When your company suffers due to an employee or other individual breaching a contract, you may find yourself exploring ways to remedy the situation.
Some contract breaches may not have a major effect on your business, but others could result in your company suffering considerable losses. As a result, you may feel the need to take legal action against the breaching party in an attempt to have that individual account for his or her wrongdoing. Depending on the circumstances of the situation, various types of damages may be warranted.
With compensatory damages, the desired outcome would relate to having you and your company put in a situation where it would seem as if no negative effects resulted from the contract breach. For instance, if the breach resulted in your company losing money, the breaching party may have to repay the specific amount as part of compensatory damages.
When it comes to punitive damages, the aim of this type of outcome relates to enacting some sort of negative consequence on the breaching party. This means that even if the individual had to pay compensatory damages to restore your company’s losses, he or she may also have to provide additional compensation beyond your simple losses in the form of punitive damages. However, these damages do not typically play a role in business contract cases.
If the contract breach did not result in any financial losses to your company, the court could award nominal damages. In these cases, nominal damages typically do not result in high awards, and in some instances, the damages may not result in any monetary compensation.
Because your company plays a significant part in your earning a living and provides a sense of emotional attachment as well, you would undoubtedly have strong feelings regarding a breach of contract. Therefore, you may wish to explore your legal options if you feel that pursuing damages for the negative effects to your company created by the breach could work in your best interests and the best interests of your business.