Centuries ago, when literacy was still a fledgling privilege, parties in business often verbalized their contracts. Their word was as good as gold, as some might say. In a modern world, the most successful California executives will say, "Get it in writing." Every business owner knows a contract has to be in writing, and all involved parties have to sign it.
What happens, then, when executives do everything right? They fill in the details, proof them painstakingly and take the finalized document to the committee for signing. Everyone leaves the room feeling a sense of accomplishment and purpose. Together, they know they will reach the goals the partnership is aiming for.
But they fall short. A couple of the parties do not fulfill their end of the bargain, and next thing they know, the others want to see them in court. What happened? FindLaw explains the scenario as a "breach of contract."
Business owners know it all too well, and so do courts. They know it so well they have remedies already in place to deal with situations similar to the above.
The Judicial Education Center explains what those remedies are. Courts may award compensatory damages that include monetary reimbursement, refunds or payments in another form. Sometimes they offer punitive damages as well, but the JEC says this usually occurs in tort cases rather than those involving a breach of contract.
Other possible remedies include "specific performance, rescission and restitution," according to the JEC. Courts calculate compensation by considering the kind of contract that was in place and the kind of loss that resulted from the breach.