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Four Types of Damages Available in a Breach of Contract Compensatory damages. Compensatory damages aim to restore the party who did NOT breach the contract back to the position they would have been in if the other party had held up their end of the deal as promised. Punitive damages. ... Nominal damages. ... Liquidated damages.
What Is Required to Prove Compensatory Damages? Causation: The defendant's breach must be the reason for the plaintiff's economic losses. ... Foreseeability: The losses must be foreseeable at the time of contract formation. ... Calculable: The losses must be quantifiable and able to be calculated into specific monetary amounts.
Illinois Breach of Contract Remedies Typical breach of contract remedies include money damages, liquidated damages, restitution, rescission, specific performance, consequential damages. Of course, the remedy available depends on the specific facts of each case as well as the specific terms of the contract.
Punitive damages are extremely rare in breach of contract cases, particularly in Illinois, and will not be awarded unless the breach amounts to an independent tort and includes malice, wantonness or oppression. Lost profits can be awarded as monetary damages if they can be estimated with reasonable certainty.
The relevant criteria are: There is a legally binding contract. ... The other party has failed to perform their duties under the contract. ... You have suffered loss as a result of the breach. ... The breach occurred within the last 6 years. ... Collating and preserving evidence. ... Reserving your rights. ... Taking legal advice.
The most common remedy is damages, where the court determines the damage that the breach of contract caused, and directs the party who breached the contract to pay a sum of money. In some circumstances, the court will make an order for specific performance.
The general remedy for breach of contract is a monetary sum amounting to the financial loss suffered as a result of the breach. The common law position is to place the innocent party in the same position as if the contract had been performed, such as accounting for a loss of sales.
Calculation of Damages First, the court will determine what the innocent party would have gained had the contract not been breached. Second, the court will determine where the innocent party now stands. In other words, the court will determine what the innocent party lost and has not yet regained.