Contracts outline the expectations and obligations of each party, and they often contain complex language that spells out those terms. The ideal contract covers many contingencies in a manner that is agreeable to both sides. However, even the most complete contract may not protect against real life events, delays or misunderstandings that can lead to breach of contract.
When one party breaches the terms of the contract by not following through with its obligations, it may cause the other party to incur damages. Most North Carolina business owners prefer to resolve contract breaches through civil channels such as negotiation or alternative dispute resolution. However, sometimes a lawsuit is the most effective way to obtain redress.
A successful resolution
If a company can prove the other party has breached the contract, they may seek certain remedies through the civil courts. These remedies may include the court forcing the party who breached the contract to live up to its obligations and/or awarding damages to the other party. Damages may include the following:
- The amount of money the breach of contract cost the other party
- A nominal amount of damages when the breach did not cost the other party any monetary loss
- Damages the terms of the contract stipulate in the event that one party is in breach of contract
- Additional damages awarded as punishment for the party that breached the contract
Punitive damages are rare in business lawsuits. However, North Carolina business owners facing breach of contract matters will certainly want to maximize any claim against the breaching party. Many seek legal advice before proceeding with any action that affects the success of their businesses.