Contracts and other legally binding agreements between individuals and/or business entities are protected by the law. As such, all parties involved must comply with the terms as specified by the agreement.
Similarly, parties that suffer losses due to a violation of an agreement have rights and are protected under the law.
If an involved party does not uphold its part of an agreement, the other parties may be able to recover expectation damages.
Understanding the basics of contract law and expectation damages can help you maintain your rights when entering into a contract, whether written or oral.
If you or a loved one have been a victim of a breach of contract, or if you have questions about recovering financially after a loss caused by someone else, the seasoned team at Schwartzapfel Lawyers can help. Get in contact with us by calling 1-516-342-2200 or visiting us online now!
Contracts and the Law
A contract is an agreement between two or more parties that is enforceable by the law. Parties that enter a contract agreement are legally responsible for the agreed-upon terms or conditions. Said differently, contracts are a roadmap to future litigation.
Note: Contracts do not just exist between companies or businessmen. There are different types of contracts and different reasons why you may enter an agreement with another party or parties.
When you take out an insurance policy for your health, home, or car, you enter into a contract agreement with that company. When you start a new job, you enter into a contract with your employer. Even marriage is a contract between you, your spouse, and the state you are getting married in.
Contracts outline both the rights and obligations of all the involved parties. They protect all those involved.
Legal contracts and agreements are used in many circumstances, so everyone should know their rights when entering one.
For more information about contracts and different types of agreements, call Schwartzapfel Lawyers today at 1-516-342-2200 or visit us online to schedule your free consultation with our experienced team. It will be our honor and privilege to fight for you every step of the way.
Expectation Damages
Since contracts are backed by the law, any breach of a contract can result in legal consequences. As such, individuals who experience a contract breach have the right to seek compensation.
Expectation damages are just one of many types of damages that can be recovered after a breach of contract or legal agreement.
Expectation damages are damages collected by the non-breaching party that suffers losses due to another party’s breach of an agreement. Expectation damages are calculated based on what was promised to the non-breaching party when they entered the agreement.
For example, if you are promised a $100 return on investment in a contract agreement and receive only $40, you can recover the remaining $60 by claiming expectation damages.
Expectation damages are calculated by subtracting the returns or benefits received from the returns or benefits that were promised by the contract agreement.
The non-breaching party may be eligible for other types of damages alongside expectation damages after a breach of contract. The types of damages they can claim depend on the nature of the breach and the extent of its impacts.
For a better idea of what you can claim when filing a lawsuit, or to better understand how you or a loved one can mount a successful legal case, we suggest going over the details of your case with a seasoned attorney. To speak with one today, please contact the highly qualified team of Schwartzapfel Lawyers by calling 1-516-342-2200 now!
Other Types of Damages
Different types of damages can be recovered after a breach of contract, all of which can be characterized by how they are calculated or what situations they apply to.
The following are several types of damages that individuals may claim under contract law:
Reliance Damages
Unlike expectation damages, reliance damages do not seek to compensate for contracted benefits. Instead, they allow the non-breaching party to recover resources or money they invested to uphold their end of the contract.
For example, if an individual invests or pays $100 per the terms of a contract, they may be able to recover that money as reliance damages if the other parties do not uphold their obligations under the agreement.
Incidental Damages
Incidental damages are damages for any expenses that the non-breaching party sustains due to a breach of contract or while trying to cover the terms of the contract.
For example, a manufacturer has a contract with a delivery service to make sure their orders are fulfilled. If the delivery service fails to uphold its end of the agreement, the manufacturer may have to absorb the costs and hassle of delivery, which they can claim as incidental damages.
Consequential Damages
Consequential damages are similar to incidental damages in that they deal with damages caused by a breach of contract. However, consequential damages are less direct than incidental damages.
Drawing from the above example, a break of contact by a delivery service may not only cost a manufacturer delivery expenses but may also lead to a loss in profits. If they cannot fulfill orders on time, they may lose clients and suffer a decrease in revenue. Moreover, their reputation as a company may also be harmed.
Liquidated Damages
Liquidated damages are often outlined as part of a contract agreement in anticipation of breaches or lack of ability to comply with certain terms. They are set damages that correspond with violation of specific obligations.
A contract may include a clause that holds a party liable for paying a certain amount of money if they fail to uphold their end of the agreement. For example, a contract may hold a manufacturer responsible for paying $10,000 if they do not provide a supplier with a certain amount of product in an allotted period.
Liquidated damages help keep all parties accountable in an agreement and make the consequences for a breach of the contract clear to all those involved.
Exemplary Damages
Sometimes referred to as punitive damages, exemplary damages are awarded when a breach of a contract leads to extensive losses or if the breaching party’s actions were malicious and especially harmful to others involved.
While punitive damages are not typically awarded in contract breach cases, there are some circumstances in which they are applicable.
In short, you can claim countless kinds of damages in a breach of contract case. To learn more now at no charge, call Schwartzapfel Lawyers at 1-516-342-2200 today.
Breach of Contract: What To Do
When you enter into a contract agreement, you have legal rights. If you have suffered losses due to a breach of contract, you may be able to recover damages you sustained as a result.
You can take different routes after a contract breach to maintain your rights if necessary. The right lawyer can help you determine your best course of action.
Here are a few steps you should take before starting a contract breach claim:
- Discuss what happened with the other party or parties to determine the cause of the breach. In some cases, breaches can result from honest mistakes or circumstances that are outside control. Be sure to remain amicable and gather as much information or evidence just in case you do decide to file a claim.
- Assess the damages you sustained and the impact they have on you. All business and personal ventures come with losses, some of which you may not recover.
- Negotiate solutions with the involved parties and attempt to negotiate a settlement or compensation agreement with the breaching party.
- File a lawsuit if you are eligible to recover damages and cannot reach an agreement with the breaching party.
Often, breaches occur because one or more parties cannot realistically uphold the terms of the agreement. After a breach of contract, you can reform an agreement to better fit all the parties involved.
Note: Although rare, certain contract agreements may not be legally enforceable if their terms are unclear or difficult to fulfill. To see if this applies to your case, you should consult with a skilled expectation damages lawyer right away.
Protecting Yourself
When entering into a contract agreement, the best way to protect yourself is to ensure you are fully aware of its terms and the rights you are entitled to.
Some agreements may include clauses that deny parties rights or benefits under certain circumstances or fail to explain the terms each party is held to clearly.
You should be able to understand all the obligations you have when entering a contract agreement, as well as be able to comply with them. Note: You cannot be held liable for damages after a breach of contract if you uphold your end of an agreement.
If you are confused by the terms of a contract, the right lawyer can look it over before you sign. A skilled lawyer can also help you negotiate an agreement that is beneficial to you.
The lawyers at Schwartzapfel Lawyers are experienced, resourceful, and have your best interests at heart. Call 1-516-342-2200 for help before entering into a contract agreement or to start the process of recovering damages after a contract breach.
That said, you shouldn’t wait, as your window to file a claim and recover all that you are entitled to may soon close forever. To keep that from happening, act now and have Schwartzapfel Lawyers fight – and win – for you!
Call now or visit us online to schedule your free consultation today! Your financial future is worth it.
DISCLAIMER: Nothing on this page should be considered legal advice. You should seek the appropriate counsel your situation requires. For more information, call 1-516-342-2200 now!
Sources:
Schwartzapfel Lawyers, P.C. | Fighting For You™™
Contract – Legal Information Institute | Cornell Law School
Expectation Damages – Legal Information Institute | Cornell Law School
Contract Damages Overview | National Paralegal College
Damages in a Wrongful Termination Case for Breach of Contract | Nolo Legal Encyclopedia
