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 an accountant, trying to predict the outcome to a client's court case.
This is what you've been told:
- The judge changed the named buyer in the agreement from the individual to the LLC the parties intended, after finding the wrong party name was inserted.
What type of remedy is exemplified in this situation?
Answer:
- Reformation
Explanation:
-
The court rewrites the terms of the contract.