Remedies Available for Breach of Contract Pdf

In business, contracts are the building blocks of relationships. They are the legal backbone that holds the parties involved accountable for their commitment. However, not every party stays true to its promises, and in such cases, a breach of contract can occur. If one of the parties fails to perform its obligations, the other party may be entitled to remedies to compensate for the damage caused by the breach.

If a breach of contract occurs, the first step is to review the terms of the contract carefully. It is crucial to check whether the breach is a material breach or not. A material breach is a breach that fundamentally changes the nature of the contract and renders it impossible to perform. If it is a material breach, then the non-breaching party can terminate the contract and claim damages.

Apart from termination and damages, there are other remedies available for breach of contract. Here are some of the remedies:

Specific Performance

Specific performance is a court order requiring the breaching party to fulfill its contractual obligations. This remedy is generally available when the subject matter of the contract is unique, and damages cannot fully compensate the non-breaching party. For example, in a contract to purchase a rare artwork, specific performance may be granted instead of damages.


Restitution is a remedy that requires the breaching party to return any benefits received from the non-breaching party. This remedy is available when one party has received payments or property from the other party and subsequently breaches the contract. The non-breaching party may be entitled to restitution to recover the value of what it has supplied.

Punitive Damages

Punitive damages are awarded to punish the breaching party for its wrongful conduct. This remedy is available in situations where the breach is intentional or the result of gross negligence. Punitive damages are not awarded to compensate the non-breaching party for its losses but to deter the breaching party from repeating the misconduct.

Liquidated Damages

Liquidated damages are a pre-determined amount of damages specified in the contract that the parties agree to in the event of a breach. The liquidated damages serve as a measure of compensation for the non-breaching party and avoid the need for litigation to determine an appropriate amount of damages.


The remedies available for breach of contract are an essential aspect of business transactions. It is crucial to include provisions for these remedies in the contract to ensure that both parties understand their rights and obligations in case of a breach. If you encounter a breach of contract, it is essential to seek legal advice to assess your options and choose the remedy that best suits your situation. Remember, prevention is always better than cure, and it is wise to have a well-drafted contract in place to avoid potential breaches and disputes.

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