Good Essay On Remedies Of Breach Of Contract

Breach of contract is likely to appear in many distinct forms. It would be a complete breach, where an involved party would fail to deliver what they were intended to deliver. In addition, the party may follow the instructions in doing what was required, but either omit or refuse to handle a small portion that was required. This is referred to as substantial performance.
In both the United States and Canada, breach of contract may lead to a number of consequences which are mostly damages. To start with is the compensatory damage. This refers to the amount of money that will be given to the non-breaching party in order to avoid incurring loss. Secondly, there is the liquidation damage that is well stated in the contract. Usually, it stands for the unseen damages. Another key consequence is punitive damages, which are administered to the breaching party in order to avoid similar crimes in the future (McKendrick & Cohen, 2005).
Remedies of breach of contract can take several forms. In the United States, the remedies take two forms. It can be legal damages (the consequences outlined above) or it would be equitable remedies. They are usually awarded when the monetary damages is likely not to rectify the breach. They are specific performance, contract rescission and contract reformation. On the contrary, in Canada, the law does not necessitate a party to reduce losses. It concentrates on what should be done in order to reduce the substantial cost. Therefore, every party has a chance to mitigate losses likely to be incurred. Finally, it is important to involve an attorney in the both countries while dealing with breaching of contract issues in order to reach a justifiable remedy.

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Reference

McKendrick, E., & Cohen, N. (2005). Comparative Remedies for Breach of Contract. Portland, Or: Hart.