There are three main types of remedy: compensation (restitution), affirmative (injunction) and penalty (specific benefit). When someone breaks a contract with you or your company, you deserve justice. As we have seen, examples of equitable remedies for breach of contract include injunctions, certain benefits, withdrawal, and correction. Then there is a fair remedy. This type of remedy is in fact an act prescribed by the court to resolve the matter. This type of remedy is often used when there is simply no financial means. In other words, there is no money that can be given to the injured party. In this section, we briefly explain the fair remedies available to you in the event of breach of contract. The non-breaching party is always entitled to reimbursement in the event of a complete breach due to non-performance or rejection, unless both parties have fulfilled all obligations, except for the payment of a certain sum of money by the other party for the performance of the injured party. Reformulation (second) of contracts, § 373. Calhoun, a contractor, agreed to build fences worth $3,000 for only $2,000 and completed construction.

Arlene, the owner of the land, refuses to pay. Calhoun`s only right is to get the $2,000; they are not entitled to a rebate of $2,500, the market price of their services (or $3,000, the increase in the value of their property); Instead, he is only entitled to $2,000, the price of his contract. However, if Arlene had violated before completion, Calhoun would have been entitled to restitution, either based on the market price of the work or the amount by which he improved his property. If a party violates, the non-offending party is in principle entitled to restitution of property that can be returned. Arlene gives Calhoun a valuable Ming vase in exchange for his promise to build the fences. After Calhoun`s violation, Arlene is entitled to a specific return of the vase. As mentioned above, it is usually necessary for a party to appeal (such as compensation or financial damages) before the court even considers awarding equitable relief. In other words, if the parties cannot prove that the money will not resolve their contractual dispute, they will likely not be entitled to any of the equitable remedies listed above. Courts may also amend contract terms to make them fairer for one or both parties.

In cases where the contract is particularly unfair to one of the parties, the court may cancel or terminate the contract completely, thus placing both parties in the situation they were in before the conclusion of the contract. Termination occurs if a previously existing contract has been withdrawn because it has been breached. The contract can be rewritten in another way so that both parties are satisfied with the terms. An example should help make this concept clearer. 2. Punitive Damages. Punitive damages (also called “exemplary damages”) are awarded to punish or set an example for an offender who acted intentionally, maliciously or fraudulently. Unlike damages, which are intended to cover actual damages, punitive damages are intended to punish the perpetrator of blatant conduct and to deter others from acting in the same way. In addition to damages, punitive damages are also awarded. Punitive damages are rarely awarded for breach of contract. They are more common in tort cases to punish intentional or reckless misconduct that results in personal harm. There are several other equitable remedies that a court can use to resolve a contractual dispute.

In the event of an appeal, the non-offending party may receive financial damages. On the other hand, a party may receive equitable relief if a court requires the other party to perform its part of the contract. This replaces the imposition of a fine. Equitable remedies are the remedies that a court can grant in a dispute. These remedies may include monetary damages, injunctive relief and withdrawal. A restraining order is another fair remedy that orders someone to refrain from doing something they should not do. A marina owner can file an injunction against a boat ramp tenant if the boat or owner poses a threat to other boats in the marina. Captain Clay has a boat mooring contract with the municipal marina. He moored his boat there every night after fishing. Every night, he cleans his catches and leaves the bones and skin to the pelicans. This may be a good thing for seabirds, but a bad thing for people walking along the boardwalk in the evening. Some even slipped and fell into the water because Clay carelessly cleans the fish.

When Sarah arrived at her new home, she noticed that a few things were missing. Annoyed, she contacted Marty and demanded the return of the items or a new contract that excluded the items from the price. What really happened was that the original contract was cancelled because Marty violated it by taking elements included in the contract to sell the apartment. No damage was caused. As long as both parties agree to cancel the old contract, it is easy to conclude a new contract. There are several remedies in case of breach of contract, such as awarding of damages, certain benefits, withdrawal and refund. In courts with limited jurisdiction, the primary remedy is an award of damages. Since some executions and withdrawals are fair remedies that do not fall within the jurisdiction of the courts of first instance, they are not covered in this tutorial. When Marty drafted the contract of sale of the condominium, he never mentioned that the condo taxes had not been paid for years. After a title search came back, which revealed that $10,000 in taxes was due, Sarah asked to reform the contract to exclude taxes from the credit Marty is entitled to if they close the house.

In addition, you can also contact a lawyer to help you create your first contract to avoid disputes or mistakes from the start. An important limitation on the award of damages is the obligation to reduce the amount of damages. The non-breaching party is required to reduce or minimize the amount of damages to a reasonable extent. No compensation may be paid for losses that could reasonably have been avoided or substantially mitigated after the breach. The non-breaching party`s failure to exercise due diligence to mitigate the damage means that the award of damages will be reduced by the amount that could reasonably have been avoided. Do not be confused with breach of contract. Marty did not fail to keep a promise. It failed to include tax arrears. In fact, he distorted the total cost of buying the home by ignoring outstanding taxes.

A new contract is written, which contains the tax arrears or contains a clause stating that Marty must pay them out of his profits. The objective of treaty reform is for a treaty to reflect and embody what both parties have agreed. If this is not the case, equality or fairness and justice allow the judge to review these parts of the contact so that they truly reflect the mutual intention of the parties. This is consistent with the age-old doctrine of justice that substance must take precedence over form. There are several common remedies for breach of contract. The appropriate remedy depends on the terms of the contract, the nature of the breach and the particular circumstances of the case. The most common remedy for breach of contract is damages. However, depending on the context, damages may not be a satisfactory remedy. This is where fair remedies can come into play. Fair remedies complement the common law and are broad, more adaptable and directly applicable. They are also discretionary, meaning it is up to the court to decide whether their request is appropriate.

Equitable remedies for violations are available if remedies do not complete the offending party. Equitable remedies are specific enforcement (an order requiring a person to deliver to the buyer the single thing that the seller has contracted), injunction (an injunction requiring a person to refrain from doing what he or she should not do) and restitution (restitution of the benefit granted to him or her if the contract is not performed. by a party, to the extent necessary to avoid a sanction against the offending party).