Monetary Remedies for Breach of Contract Lawsuits

 Posted on January 05, 2025 in English

A breach of contract occurs when one party fails to fulfill their obligations under an agreement. Breaches of contract can have significant financial and reputational repercussions. During litigation to resolve a breach of contract dispute, the court will review many aspects of the case, including whether there was a breach of the agreement and whether that breach was material, meaning that it affected an essential element of the contract. The court may grant the winning party monetary remedies. A Germantown, MD attorney can advise businesses on the potential monetary remedies available for breach of contract should they prevail in the lawsuit.

Liquidated Damages

Some contracts include a liquidated damages provision detailing a specific amount that a breaching party must pay for a breach of contract. Maryland law will enforce a provision for liquidated damages as long as it meets certain criteria, including that it be fair and reasonable. However, if the court finds that the clause imposes a penalty on the breaching party it will generally not enforce the section or award these damages.

Compensatory Damages

Compensatory damages are intended to place the non-breaching party back in the financial position in which it would have been had there not been a breach of contract. These types of damages compensate the injured party for the financial losses it suffered as a result of the breach.

Consequential Damages

Consequential damages are indirect damages caused by the breach of contract. In a sales contract, for example, if a buyer is unable to provide services to its clients because it did not receive the seller’s goods in time, the money lost as a result would amount to consequential damages.

Nominal Damages 

When a breach of contract has occurred but there is no evidence of actual financial losses, the non-breaching party may receive a small nominal fee as a symbolic gesture recognizing the wrongdoing.

Contact a Rockville, MD Breach of Contract Attorney

If your business is facing a breach of contract, the experienced Travilah, MD breach of contract lawyers can advise you on the monetary damages you may obtain. At Salvado Law Offices, our business dispute attorneys are here to represent you in your breach of contract dispute. We understand how important it is to ensure that your business is compensated for the damage that a breach of contract can cause. Call our offices at 301-933-1814 for a consultation today.