In business, you rely on contracts to get the things you need from your suppliers, distribute your goods or services to clients, and possibly hire and retain your employees. If your contracts are well-written, comprehensive and the result of a good-faith negotiations, your chances of having one of the parties breach are low.
Low, but not zero. As remote as the possibility might seem, there is always a chance that a company or individual you are doing business with will fail to hold up their end of the deal, potentially costing your business a lot of money.
If you ever find yourself in that situation, your best move is to consult your business law attorney, who may be able to resolve the situation before it goes too far, or represent you in court if necessary.
There are two types of remedies that Philadelphia businesses can pursue after a breach of contract: remedies in law and remedies in equity.
Remedies in law: this is a fancy way of referring to monetary damages. Commonly, plaintiffs seeks compensatory damages in order to put themselves in the position they would have been had the defendant acted as promised in the contract. Other remedies in law include restitution, punitive damages and liquidated damages.
Remedies in equity: Having the defendant pay money to the plaintiff is not the only way to resolve a contract dispute. In some cases, the plaintiff will want the court to compel the defendant to perform its obligations under the contract, which is called specific performance. Another option is cancellation, or simply having all parties walk away from the contract.
As you can see, there are multiple potential solutions to this problem. Though most victims of breach of contract want financial compensation, in many cases it makes more sense to resolve the conflict differently. Which type of remedy you seek will depend on the particular circumstances of your case and the needs of your business.