Laura Penn Shanley

A breach of contract occurs when one party to a contract does not perform the duties promised, and the other party or parties are left without the benefit they bargained for. The damaged party usually has the right to sue for compensatory damages or specific performance. In a few cases, the damaged party may also sue for punitive damages.

Compensatory damages are repayment from the breaching party for the losses suffered by the non-breaching party. They may include restitution damages, to repay the value of what has been received, reliance damages, to recover out-of-pocket costs, and expectation damages, to recover profits lost due to the inability to perform a contract with a third party. Finally, compensatory damages may include interest, attorneys' fees and court costs if they are permitted under the contract or other law.

Specific performance is requested when the product or service being purchased is unique such as a work of art or a piece of real estate. Along with any other compensatory damages suffered, a party may request specific performance to force the breaching party to perform under the contract and transfer the specific item promised. The non-breaching party must be able to prove that they were ready, willing and able to perform and the breaching party refused.

Finally, punitive damages are available in a few cases where the breaching party has acted so maliciously or recklessly that punishment is necessary to discourage the breaching party from acting in this manner in the future. Such damages are usually accompanied by a bad faith claim or a claim for another, tortious act such as fraud or conversion.

There are a number of defenses to a breach of contract claim including impossibility of performance, illegality, duress, misrepresentation and lack of capacity.

Please call if you would like to schedule a consultation to discuss the facts of your case.