A business contract creates various obligations that the parties in the agreement must fulfill. Topics ranging from making payments for goods to surrendering business property after a sale can be covered. When these obligations are not fulfilled, business operations often take the hit.
The good news for business owners is that remedies are usually available for a breach of contract. These remedies typically depend on the severity of the breach and its overall impact.
Legal Remedies for a Breach of Contract
If a party has performed the major obligations of the contract but failed to meet a minor term or condition, the breach may be categorized as minor. Also known as a partial breach, a minor breach rarely has a significant effect on the contract itself or on the parties that are involved.
In this situation, the non-breaching party may be eligible for legal remedies. Legal remedies allow the non-breaching party to recover compensatory damages to make up for any financial losses. Parties must continue to meet their contractual obligations or risk a material breach.
Equitable Remedies for a Breach of Contract
A material breach is more serious than a partial breach. It occurs when the fulfillment of the contract is significantly hindered or becomes virtually impossible. While money damages may be available for a material breach, the harm may be so significant or money damages may not be enough to make the non-breaching party whole, an equitable remedy may be available.
Examples of equitable remedies include:
- Specific performance
- Issue of an injunction
- Contract rescission or reformation
Do I Need a Lawyer for Help with a Breach of Contract?
Contract laws are incredibly complex. Our attorneys can determine whether you have a claim for damages or other remedies. Call (312) 625-1679 today to schedule a free legal consultation. Markoff Leinberger serves clients from Chicago and other areas of Illinois. Our firm can also skillfully handle contract disputes for business clients in jurisdictions across the United States.