What Remedies exist for Breach of Contract?

break of contract

What is Breach of Contract and its Types?

There are two types of contracts: a contract for the sale of goods and a contract for services.  For the most part, the remedies available for breach of contract for either a sale of goods or for serves are the same, but there are also some differences.  When there’s a breach of contract for the sale of goods, the UCC governs.  Under the UCC, failure to deliver goods is a material breach, but in common law, it is not.  Any contract can contain a “liquidated damages” provision which typically includes a certain amount of money that the non-breaching party is entitled to if a party breaches the contract.

What are the Remedies for Breach of Contract?

In the event the contract you entered into does not have such a provision, the following remedies may be applicable:

Breach of contract for services:

1)    Expectation damages—money equivalent for the loss of the benefit of the bargain

2)    Reliance damages—put the non-breaching party in the pre-contract position (before the contract occurred)

3)    Restitution damages—prevents unjust enrichment and puts the breaching party in the pre-contract position

Breach of contract for sale of goods:

1)    Under the UCC, there’s the Perfect Tender Rule, which provides that if the goods or tender of delivery fail to conform to the contract, the buyer may:

  1. Reject the whole;
  2. Accept the whole; or
  3. Accept any commercial unit or units and reject the rest.

2)    If the Seller breaches, the Buyer can:

  1. Cover—buy substitute goods and get the difference between what the buyer paid and what the buyer was supposed to pay under the contract;
  2. Specific performance—if the goods are unique (rare, not easily replaced) or in other proper circumstances; or
  3. Do nothing and sue for market damages—the difference between the market price and the contract price.

3)    If the Buyer breaches, the Seller can:

  1. Re-sell and seek damages;
  2. Recover from the Buyer the difference between the contract price and the resale price; or
  3. Recover under the lost profit measure

How do you Prove Damages in a Breach of Contract?

1)    There is an enforceable contract between the parties,

2)    Defendant breached the contract, and

3)    Plaintiff (non-breaching party) was damaged.

EPGD Business Law is located in beautiful Coral Gables, West Palm Beach and historic Washington D.C. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Eric Gros-Dubois

Eric P. Gros-Dubois founded EPGD Business Law in 2013 and is the current head of the firm’s corporate, estate planning, and tax practice, and manages the firm’s Washington D.C. office. With a JD and MBA, and a specialization in finance, Eric is able to step back and view the legal world through a commercial lens while also acting as a trusted business advisor for his clients. He does his best to be solutions oriented, and tries to think like a business owner, not just a lawyer.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.



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