A contract is a legally binding agreement between you or your company and another entity. If either party to the contract fails to live up to its terms, a breach of contract occurs.
A breach of contract could cause harm to you or your business. If you hold up your end of the bargain but the other party does not, the law entitles you to relief. According to FindLaw, this could come in the form of one of three legal remedies.
1. Cancellation and restitution
If you have a contract with another party and the other party breaches it, you may be able to cancel the contract. This means that the terms of the contract are void and you no longer need to live up to your obligations. You can then file a lawsuit for restitution. If you win, the other party is then responsible for restoring your company to the position it held before the breach.
You could also sue the breaching party for damages, which means monetary compensation for the harm that you and your business suffered as a result of the breach.
3. Specific performance
Specific performance means that, following a breach of contract, the court can order the other party to do for you what the contract said to do in the first place. This remedy may be available when mere monetary compensation is not enough.
The court orders remedies for breaches of contract with the goal of putting you and your company as closely as possible to the position you would have been in had the breach never happened.