Remedies for Breach of Contract Essay

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Remedies for breach of contract

Contrary to what most people might think, the solution for breach of contract is not designed to punish the guilty party, instead it is to protect and preserve the rights and reasonable expectations of the party seeking reimbursement. The purpose of the contract law is that in the event of one party not fulfilling their obligation towards the other party, the party harmed will be compensated for its losses. In most cases the standard solution for breach of contract is money reimbursement, however, in some special cases the court can assign the party to perform a specific performance or injunction. With money reimbursement the court will allow the harmed party to prove to the court the amount of money
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In contracts that involve the sell of goods the innocent party has additional options of stoppage of transit and resale of goods.

Judicial Remedies is an option, which requires the parties to present their case before a court of expert jurisdiction. The options that are available are: to take action for damages, to sue for quantum meruit, to sue for specific performance or to sue for an injunction. In most cases the damages are given to compensate the innocent (injured) party if its expectations have not been meet or if there is a loss of bargain. The award for damages is a substitute remedy, which in common law is reflected by the monetary approach. Common law gives the option to the guilty party to either fulfil the contract or to pay the damages. The Equity law additionally gives the option of granting of specific performance and injunctions to restrain and actual or threatened breach of a negative stipulation. The plaintiff under the common law has the right to exercise the option, the court has an obligation to grant the party relief and therefore in a case of breach of contract the innocent party has to be awarded damages. With the use of equity law the remedies are flexible, the court has to decide whether the plaintiff’s rights to damages are sufficient enough. If the innocent party has been guilty of delay in seeking the remedies, it can be refused the reimbursement. Under the specific performance the courts have the option of forcing a guilty party to perform
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