Breach of Contract Remedies
Lesson:
In the United States, remedies for breach of contract aim to compensate the non-breaching party and put them in the position they would have been in had the contract been performed.
When a party breaches a contract, several remedies are available to the non-breaching party:- Monetary Damages - The party at fault must provide payment to the injured party.
- Specific Performance - The party at fault must fulfil the obligations of the original contract.
- Recision - The injured party is allowed to void the contract, and both parties are restored to their original state.
- Reformation - The court rewrites the terms of the contract.
You're an accountant, trying to understand how a court will deal with a problematic situation.
You've been briefed with the following facts:
- The judge required the landlord to execute the lease extension and honor the renewal option in the tenant’s contract.
What type of remedy is exemplified in this situation?
Answer:
- Specific Performance
Explanation:
-
The party at fault must fulfil the obligations of the original contract.