One of the key elements of any Maryland business is business contracts. Unfortunately, not all parties adhere to the terms of the contract they enter into, resulting in a breach of contract. A breach of contract happens when one party fails to fulfill the obligation or obligations they agreed to when they signed the contract, resulting in some kind of financial harm for the other party. If you are a business owner and you are concerned that you are or will be a breach of contract victim, call Peeples Law to speak with a contract lawyer Frederick, MD clients recommend.
What Is the Potential Harm a Business Can Suffer Because of Breach of Contract?
There are several legal remedies that may be available to a company that has suffered a breach of contract situation. One of the most common legal remedies for breach of contract is when the court awards the injured party compensatory damages. This means that the party that breached the contract must give the injured party financial compensation to cover the losses they suffered as a result of the breach. This amount is usually the amount of money the injured party would have received had the terms of the contract been fulfilled.
In many cases, the party may have fulfilled some of their contractual obligations and the contract has only been partially breached. In these situations, the injured party may be entitled to compensation to cover the expenses they incurred to hire a third party to complete the tasks that the breaching party failed to fulfill.
There are also cases where instead of paying the injured party compensatory damages, the breaching party must pay them restitution. The goal of restitution is to restore the injured party to the place where it was before the parties entered into the contract. This usually involves the breaching party returning any assets they had received from the injured party under the contract terms. This often happens when the breaching party is unable to fulfill the contract because of unforeseen circumstances (i.e. illness) and is forced to cancel the contract.
There are several other remedies that can occur when a contract is breached, including:
Call Our Office for Legal Advice
Many companies could avoid breach of contract situations if they retained the services of a Frederick, MD contract lawyer to negotiate and draft up any contracts they enter into. Contact Peeples Law today to find out how our legal team can help ensure your company is protected from any breach of contract issues.