What monetary damages can be sought when a contract is breached?

| Jan 12, 2021 | Uncategorized |

The gig economy is big in Los Angeles, especially in the entertainment industry. Many of these professional artists enter business contracts, but the reality is that sometimes one party to a contract does not fulfill the terms of the agreement leading to a contract dispute and litigation. The following is a brief overview of the types of monetary damages that, depending on the circumstances, may be sought through a breach of contract claim.

Compensatory damages

The most common type of monetary damages sought in breach of contract claims is compensatory damages. The court will order the breaching party to pay the non-breaching party enough to pay for what it will reasonably cost them to obtain the goods or services they were promised elsewhere.

Restitution

Restitution is another type of monetary damages sought in breach of contract. Through restitution the breaching party will pay the non-breaching party what they would receive had the contract been honored.

“Quantum Meruit”

Sometimes the non-breaching party already performed some, but not all, of the work per the terms of the contract, but the breaching party did not. In this case, the non-breaching party can seek payment for the portion of work performed prior to the breach. “Quantum Meruit” is simply a legal way of saying, “as much as he deserved.”

Punitive damages

Punitive damages are meant to punish the party that breached the contract. Generally, these are only paid if the breaching party did something morally reprehensible.

Liquidated damages

Sometimes the contract itself contains clauses that outline what the remedy will be if a party breaches the contract. These are known as liquidated damages.

Visit our website to learn more about civil litigation

This is only a brief overview of the types of monetary damages that may be sought in a breach of contract claim. This post does not contain legal advice and should not form the basis of any breach of contract claim. Readers can visit our website to learn more about civil litigation in Los Angeles.