Contracts are crucial for business relationships, providing a framework for agreements and transactions. When one party fails to fulfill their contractual obligations, it is considered a breach of contract. This breach can have significant financial implications for the party affected.
A breach of contract occurs when one party fails to perform their duties as outlined in the agreement. This could include a failure to deliver goods or services as promised. To protect their interests, the non-breaching party has the right to seek legal recourse.
Economic damages are designed to compensate the injured party for the financial losses they have suffered due to the breach of contract. The aim is to restore the injured party to the position they would have been in if the breach had not occurred.
Below are a few common types of economic damages that can be pursued:
- Direct Damages: Actual financial losses suffered due to the breach.
- Consequential Damages: Indirect losses resulting from the breach.
- Incidental Damages: Expenses incurred to mitigate the damages caused.
- Lost Profits: Compensation for missed business opportunities and projected profits.
When a breach of contract occurs, businesses have the right to pursue economic damages to compensate for their financial losses. Direct damages, consequential damages, incidental damages, and lost profits are the main types of economic damages that can be pursued. Businesses should seek guidance from legal and forensic experts to navigate the complexities of breach of contract cases and increase their chances of a favorable outcome. Contact Uphando Forensic & HR Services today and let us assist you.