What Are the Damages for Breach of Contract?
Breach of contract occurs when one party to an agreement does not live up to obligations set forth within that agreement. A breach of contract can cause significant damages to a person or company who relied upon the assumption that the agreement would be carried out.
Nevada law allows the wronged party to file a lawsuit in order to obtain damages for breach of contract. If you wish to pursue a claim for damages, you must be able to prove that the agreement was actually breached. You also must be able to prove the type and extent of losses you suffered because of the breach. A Las Vegas, NV lawyer can provide you with assistance in pursuing legal action if you have been harmed because someone you entered into a contract with failed to live up to the promises that were made. Contact Pintar Albiston LLP today to learn more about how your attorney can assist with legal action.
Damages for Breach of Contract
In the vast majority of breach of contract cases, the damages for breach of contract are monetary damages. One party sues, claims a breach occurred, and seeks financial compensation for the resulting losses. The actual economic damages for breach of contract are called compensatory damages, because they are intended to compensate the victim of the breach for actual financial harm.
There are two types of compensatory damages for breach of contract:
- Expectation damages: This refers to the amount of money or the value that the non-breaching party was expected to receive if the agreement was carried through. This is generally straightforward as the amount of losses can be determined by considering the contract terms or the market value of products or services. For example, if a house painter contracted to paint a house and the homeowner promised to pay $5,000, the painter’s losses if the homeowner did not pay would be the $5,000 that the contract guaranteed he would receive.
- Consequential damages: This refers to damages that the non-breaching party suffered indirectly as a result of the failure to perform the agreement. This is much more speculative because it is harder to determine how much money would have been made if the breach had not occurred. For example, if an apartment owner contracted to have the property painted so he could rent it and the painter did not follow through, the consequential damages could include the loss of rent that the landlord otherwise would have received. Calculating this can be difficult, because there is not necessarily a guarantee that the property would have rented right away even if it was painted. The party seeking consequential damages must show that the loss was foreseeable and flowed from the breach.
In some breach of contract cases, monetary damages are not sought but instead a different remedy is pursued. For example, in the contract for the sale of a house, the buyer could try to force the transaction to go through if the seller tried to breach the contract and keep the home.
A Las Vegas, NV lawyer can explain what you may be entitled to for damages for breach of contract and can help you to pursue a claim to try to recover the money or other remedy you desire. Contact Pintar Albiston, LLP today to learn more.