What are the 4 types of damages available for breach of contract?

Asked by: Terence Murray  |  Last update: July 12, 2022
Score: 4.6/5 (67 votes)

There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.

What are the four types of damages?

One of the most common remedies comes in the form of damages, or monetary awards, which are further broken down into four general categories.
  • Compensatory Damages. Compensatory damages (or “actual damages”) are specifically meant to make up for the plaintiff's losses. ...
  • Punitive Damages. ...
  • Liquidation Damages. ...
  • Nominal Damages.

What are the most common type of damages available for a breach of contract?

General Damages. General damages cover the loss directly and necessarily incurred by the breach of contract. General damages are the most common type of damages awarded for breaches of contract.

What are the four elements of a breach of contract?

The Four Elements of a Breach of Contract Claim
  • There was a valid contract;
  • You performed your part of the contract;
  • The defendant failed to perform their part of the contract; and.
  • You sustained damages caused by the defendant's breach.

What are the 5 types of damages?

There are six different types of damages: compensatory, incidental, consequential, nominal, liquidated, and (sometimes) punitive.

Contract Law Remedies for Breach: Damages (Compensatory, Incidental, Consequential)

26 related questions found

What are the 6 types of damages?

There are six different types of damages: compensatory, incidental, consequential, nominal, liquidated, and (sometimes) punitive.

What are the 3 types of damages?

Types of Damages
  • COMPENSATORY. Compensatory damages are generally the most identifiable and concrete type of damages. ...
  • GENERAL. General damages are sought in conjunction with compensatory damages. ...
  • PUNITIVE. Punitive damages are meant to punish a Defendant for particularly egregious conduct.

What are types of breach of contract?

Types of Breach of Contract
  • Anticipatory. Anticipation by one of the parties is the anticipatory breach. ...
  • Actual. The refusal to abide by the contract is an actual breach. ...
  • Suit for Rescission. ...
  • Suit for Injunction. ...
  • Suit for Specific Performance. ...
  • Suit for Quantum Meruit. ...
  • Suit for Damages.

What are the types of breach?

The breaches in contract normally fall into any of four categories: minor, material, fundamental (repudiatory), and anticipatory.
  • A minor breach of contract. ...
  • A material breach of contract. ...
  • A fundamental breach of contract. ...
  • An anticipatory breach of contract. ...
  • Repudiation. ...
  • Damages. ...
  • Specific performance.

What are the five remedies for breach of contract?

Remedies for Breach of Contract
  • 1] Recession of Contract. When one of the parties to a contract does not fulfil his obligations, then the other party can rescind the contract and refuse the performance of his obligations. ...
  • 2] Sue for Damages. ...
  • 3] Sue for Specific Performance. ...
  • 4] Injunction. ...
  • 5] Quantum Meruit.

What are the 3 types of compensatory damages?

The three types of damages are economic damages, non-economic damages, and punitive damages.

How many types of damages are there?

There are four types of damages which can be claimed by the aggrieved party. Ordinary Damages or General Damages. Exemplary or Vindictive Damages. Nominal Damages.

What are two types of breach of contract damages?

Generally, there are two types of damages: compensatory and punitive. (The term "damages" typically includes both categories, but the term, "actual damages" is synonymous with compensatory damages, and excludes punitive damages.)

What do you mean by damages for breach of contract?

However, in a common general sense, damages mean an award in terms of money to be paid by the breaching party to the injured party as compensation for the loss that it suffered on account of the breaching party's default of the terms and conditions of the contract.

Which damages are not recoverable for breach of contract?

Direct damages are the easiest to foresee. For this reason, special damages are not usually recoverable. Special damages are meant to compensate the innocent party for injury or loss that is indirectly related to the breach. Even special damages must be foreseeable to be recoverable.

What are examples of general damages?

General Damages
  • Physical pain and suffering.
  • Disfigurement.
  • Physical impairment.
  • Mental health issues.
  • Loss of love, care, and companionship.
  • Reduced quality of life.
  • Future pain and suffering.

What are the 6 types of contracts?

Types of contracts
  • Fixed-price contract. ...
  • Cost-reimbursement contract. ...
  • Cost-plus contract. ...
  • Time and materials contract. ...
  • Unit price contract. ...
  • Bilateral contract. ...
  • Unilateral contract. ...
  • Implied contract.

What types of damages are recoverable?

Compensatory Damages. The first type of recoverable losses is called “compensatory damages.” Payment that falls under this category is compensation for the plaintiff's losses and injuries sustained as a result of the accident.

What three 3 Things Must a court consider in reviewing punitive damages?

To ensure that unconstitutional punishment is not imposed in the form of punitive damages, the Court has set forth three "guideposts" for courts to consider in reviewing punitive damages awards: "(1) the degree of reprehensibility of the defendant's misconduct; (2) the disparity between the actual or potential harm ...

What are actual damages in contract law?

Overview. In tort law, actual damages is a type of damages which refers to compensation awarded by a court in response to a loss suffered by a party.

What are the four types of contracts?

Learn below about the four most common types of construction contracts.
  • Lump Sum Contract. A lump sum contract sets one determined price for all work done for the project. ...
  • Unit Price Contract. ...
  • Cost Plus Contract. ...
  • Time and Materials Contract.

What are substantial damages?

Substantial damages are awarded as a means to compensate a plaintiff where they have suffered an actual loss. Substantial damages can be either general or special.

What are damages and its types?

General damages refer to those damages which arose naturally during the normal course of the events. Special damages are those that do not, of course, arise from the breach of the defendant and can only be recovered if they were in the reasonable consideration of the parties at the time they made the contract.

What are some examples of compensatory damages?

For example, if the plaintiff was badly frightened and suffered nightmares, increased blood pressure, or other anxiety related symptoms which prevented him from working or fully enjoying his life, he could seek damages for "emotional distress." If any of his property was damaged, compensatory damages could also include ...

What do punitive damages mean?

Punitive damages are awarded in addition to actual damages in certain circumstances. Punitive damages are considered punishment and are typically awarded at the court's discretion when the defendant's behavior is found to be especially harmful.