Welbaum Guernsey
Bring Clarity to Your LegalProblems. Call Us At:

Consequences of a contract breach

Contracts are law-binding documents, and people in Florida who break them can face a number of consequences. A contract breach occurs when one of the parties acts in a manner that contradicts what is written in the document.

According to FindLaw, there are a variety of negative outcomes that can result from a breach.  Some of these include:

  • Lawsuit - the nonbreaching party may sue the business or individual for the contract breach
  • Legal fees - it can cost a lot of money for defense in the case of a lawsuit or mediation
  • Negative reputation - business relationships and reputation in the community may take a hit
  • Punitive damages - although rare, the breaching party may be required to pay costly damages 
  • Contempt against the court - if a court order is not followed, the guilty party may face jail time and/or hefty fines
  • Compensatory damages - the most common outcome

According to the Judicial Education Center, compensatory damages are calculated based off the contract type and the loss that the business incurred due to the breach. The innocent party may be able to recover either general or special damages. General damages are rewarded for specific losses that the business incurred, and are the most frequently awarded. Special damages pay for losses that occurred due to special circumstances. 

Punitive damages are not typically awarded in breach of contract cases. However, when they are, it is done to punish the guilty party due to fraudulent or malicious actions. Punitive damages are owed along with compensatory damages that are due.

No Comments

Leave a comment
Comment Information

2151 S. Le Jeune Road, Suite 200
Coral Gables, FL 33134

Toll Free: 800-509-4946
Fax: 305-441-2255
Map & Directions