Have you been injured by a breach of contract? Thankfully, there are seven kinds of damages that are commonly awarded to compensate an injured party for their loss.
Compensatory Damages
Compensatory damages are the most common form of damages and reimburse an injured party for the losses that they have suffered resulting from breach of contract. The goal of compensatory damages is to make the non-breaching party whole again.
There are two kinds of compensatory damages: expectation damages and consequential damages. Expectation damages award the injured party the amount they were expected to receive from the fulfillment of the contract, whereas consequential damages compensate the injured party for any damages that indirectly occur from the breach of contract, such as lost profits.
Restitution Damages
Restitution damages are awarded when someone who breaches a contract is unjustly awarded at the expense of an injured party. Restitution damages usually come into play when two parties make a promise but only one-party benefits. The goal of restitution damages is to prevent the unjust enrichment of the contract breacher.
Liquidated Damages
Liquidated damages are a pre-determined sum decided by the parties and outlined in a contract that detail the amount recoverable by a party in the event of a breach of contract. Liquidated damages are often used in cases where it would be difficult to calculate actual damages.
Nominal Damages
Nominal damages are more symbolic than anything. Nominal damages are awarded when the injured party is in the right but has not suffered substantial harm. They are typically very low and value and exist to serve a point.
Quantum Meruit
Quantum Meruit means “as much as deserved” and allow an injured party to recover the value of the services they performed, even in the absence of a written contract. Quantum Meruit damages are commonly awarded when one party provides a service expecting compensation but receives nothing.
Punitive Damages
Punitive damages are a form of damages that seek to punish the contract breacher for wrong or immoral behavior. They are awarded on top of compensatory damages and seek to deter others from committing similar behavior.
If you have been injured by a breach of contract, it is recommended you reach out to an experienced business attorney to discuss the kind of damages you should seek.
