A “remedy” is the relief a Court may grant upon finding that a wrong has been committed. Remedies for breach of contract fall into two main classifications: “legal” remedies (i.e., the right to be awarded monetary damages) and“equitable” remedies (i.e., the right to some relief from the Court other than damages).
Legal remedies
With regard to legal remedies, the claimant may seek money damages in the amount of the profits lost by reason of the other party’s breach. Lost profit damages are also known as “expectancy” damages (i.e., the right to be placed in the same position as if the contract had been performed as planned).
Alternatively, the claimant may seek damages in the amount of monies expended in reliance on the entry of the contract. This relief is known as “reliance” damages (i.e., the right to be placed in the same position as if the contract had never been entered).
Equitable remedies
Typical equitable remedies include actions for specific performance, injunction, and/or rescission. In the action for specific performance, the injured party asks the court to order the other party to perform the promise made. In an action for injunction, the injured party asks the court to restrain or enjoin the party in breach from certain activities.
In an action for rescission, the injured party asks the court to declare the contract void and return the contacting parties as near as possible to the positions they had prior to entering the contract.
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