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What Damages Are Available in a Breach of Contract Lawsuit?

Posted on August 06, 2023 in Business Law

Broward County, FL business law attorneyWhen one of the parties who have entered into a contract with another party fails to live up to their end of the deal, the injured party can file a breach of contract lawsuit, seeking damages for the harm they have suffered because of the first party’s failure to fulfill their contractual obligations. The types of damages available in breach of contract cases can vary depending on the specific circumstances of the case. The following are some of the most common damages pursued in breach of contract lawsuits.

Compensatory Damages

Compensatory damages are the most common type of damages awarded in breach of contract lawsuits. The purpose of these damages is to compensate the plaintiff (injured party) for the financial losses they have suffered because of the defendant’s breach. There are two types of compensatory damages that can be awarded – direct and consequential.

Direct damages – also referred to as general damages – are the direct losses that result from the breach. For example, if a supplier fails to deliver goods as specified in the contract, the buyer may seek compensation for the cost of purchasing those goods from another supplier at a higher price.

Consequential damages – also referred to as special or indirect damages – are financial losses the plaintiff suffers as a result of the breach, but they are not a direct result of the breach. For example, if the supplier's failure to deliver the goods on time resulted in the buyer losing a major customer contract, the buyer can seek that financial loss in a lawsuit.

Incidental Damages

Incidental damages are the costs the plaintiff has to pay in order to avoid any further losses after the breach of contract occurs. These damages can include the expenses the plaintiff is forced to pay in order to find a substitute for the products or services the defendant failed to produce.

Liquidated Damages

Some contracts include a liquidated damages clause. This clause specifies a predetermined amount that will be awarded to one party should the other party breach the contract. In order for the court to enforce this clause, the amount of the liquidated damages must be a reasonable estimate of the actual damages that the injured party will incur.

Contact a Fort Lauderdale, FL Business Lawyer for Details

If you are dealing with a potential breach of contract, do not delay in contacting a Broward County breach of contract attorney in order to protect your financial interests. Call The Elliot Legal Group, P.A. at 754-332-2101 to schedule a confidential consultation to find out what your legal options may be.


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