In a breach of contract case, one or both sides claim that the other party involved in the agreement has failed to live up to the terms of the contract. There are several types of damages that an aggrieved party can receive for breach of contract claims, including restitution, specific performance, rescission, and general damages. If you are involved in a contract dispute with another party, it is important to understand what you can reasonably expect to recover or pay, depending on the circumstances of the case.
What is Included in Breach of Contract Damages?
The injured party can file a breach of contract claim in hopes of receiving an award for compensatory damages. Also known as actual damages, Compensatory damages, cover the cost of the loss of the nonbreaching party that occurred because of the breach. This may include:
- General damages, which include compensation for the direct costs of the loss. These are the most common damages awarded in a breach of contract claim.
- Special damages, which cover any loss incurred by the breach of contract that happened because of special circumstances or conditions not ordinarily predictable. In order to collect special damages, the injured party must prove that the breaching party had knowledge of the special circumstances at the time that the contract was made.
Punitive damages, which are damages meant to punish the breaching party and serve as a deterrent to others who might committing a similar breach, are not available to the injured party. The Supreme Court of Texas has ruled unequivocally that punitive damages are not recoverable in Texas breach of contract cases.
What to Expect in a Breach of Contract Claim
If you are involved in a breach of contract claim, you can expect to receive or pay compensatory damages for the loss caused by the breach. This will include the direct costs of the loss as well as any additional payments for special circumstances. The purpose of compensatory damages is not to punish but to make all the parties whole again, as if the contract had never been executed.
Contact Our Office Today
There are few things more important than understanding what damages are at stake in a breach of contract claim. At Bennett, Weston, LaJone & Turner, our experienced contract attorneys have helped many clients throughout the Dallas area navigate their breach of contract claims. To discuss your options in a breach of contract case with a legal professional, contact us today.