remedies

One of the reasons that companies enter into written contracts with each other is to provide a certain amount of predictability in business dealings.  The contract allows both parties to know what to expect from each other over a term that can last for months or years.  However, when one party breaks the contract, this predictability is shattered if the remedy for the breach is left up to an arbitrator or judge.  Including an exclusive remedy clause into the contract can resolve this potential source of unpredictability.

Occasionally there are situations where a seller refuses to hand over the purchased product even after the buyer has paid for it. In these cases, once the buyer has proved that the seller breached the contract, the buyer may have the option to enforce the seller’s performance of the contract. This is called “specific performance” of a contract and can be awarded as a remedy instead of money damages in certain cases.

Some breached contracts cannot be fixed by having a third party step in and complete the performance. For example, in a contract to tear down a building, it is easy enough for another company to destroy the building if the contracting party refuses. However, what about when a famous painter breaches his contract? Or a singer refuses to perform? In situations where only the contracting party’s performance is acceptable, because only he or she has the required skill or information, the court cannot order substitute performance. Instead, the court will attempt to attach a money value to the service the […]

Normally, only parties that can have responsibility traced back to them are liable for breach of contract. However, in contracts that specify joint and several liability, all parties will be bound by the same level of liability. In other words, each party bound by joint and several liability can be held liable for their own breaches as well as the breaches of every other party. In this way, parties that may not have had any involvement in the breach may still be held liable for their partner’s breaches. The suing party can collect from any and all of the opposing […]