An individual or business that does not hold up its end of an agreement may be found to be in breach of the contract. When that happens, you may be able to sue the company for damages. This is just one of your legal remedies, but it is often the most common one because doing so can compensate you for any financial losses you have suffered.
There are several types of damages that you may be able to recover, including the following:
- Compensatory: These damages will account for the financial losses you suffered as a result of the contract breach.
- Liquidated: A contract may have outlined these damages that one party will owe in the event of a breach.
- Nominal: If you did not lose money as a result of the breach, you may be awarded just a small amount of money for the other party’s offense.
- Punitive: These damages are intended as punishment and are awarded when one party was especially negligent or harmful.
If you have a written contract in place, you may easily be able to demonstrate how the company shirked its responsibilities. However, even oral contracts are considered legal and can be presented in court.
In either event, there is a statute of limitations placed on when you can file a claim. For a written contract, the law states that you have six years to initiate a lawsuit; for an oral one, you have four years.
While this information may be useful, it should not be taken as legal advice.