Acquiring compensation might not be your primary goal if someone breaks a business contract to which you are a party. Still, you might agree that hitting the other party where it hurts the most – their finances – is an effective form of deterrence.
When a partner, vendor or employee violates the terms of a contract between you, it is possible to emerge from your legal issues with financial compensation. Outlined below are two possible ways to resolve a breach of contract that harmed your business.
Can you resolve the matter out of court?
It could be in your best interests to seek a resolution outside of the court. You will save time and possibly ease the way for you and the breaching party to continue a business relationship if desired. If you choose this approach, legal guidance can help, especially if the breaching party says they will reimburse you for your harm.
Is litigation the better choice for maximizing compensation?
Depending on your goals (compensation, righting a wrong, etc.), litigating the issue could fulfill your needs. If your lawsuit succeeds, you could walk away with financial damages and the satisfaction of righting a wrong. Examples of possible damages include:
- Compensatory damages – an award to make you financially whole as if the breach never happened
- Liquidation damages – a fair estimate of your actual damages as specified in the contract
- Nominal damages – a token or small monetary award (if little or no financial loss occurred)
It may be beneficial to familiarize yourself with state business and commercial litigation laws if you need to resolve a breach of contract. Learning more about your legal options ensures that you find the ideal solution for your New York business.