1. Remedies for Breach of Contract

2. Goals
Name and discuss various remedies possible for minor and major breach of contract
Discuss the factors that affect the choice of remedies

3. Let the punishment fit the crime!
This old saying has a mirror image to contact law where the remedy is fashioned to match the severity of the breach.

4. Remedy
The legal means by which a right is enforced or a right’s violation is prevented or redressed.
Different remedies are available depending on whether a breach is a major or a minor one.
Whether the breach is a major or a minor is an issue of fact in a trial.

5. The courts will decide! Major Breach Minor Breach
When one party fails to perform a crucial duty under a contract, the party may treat such a failure as a major breach.
They will see the contact as a cancellation and regard their own obligation as discharged.
Bob hires Bill to paint a fence and install a lock. Bill does not do any of the work by the deadline. Bob sees the contract as cancelled and does not owe Bill any money.
The just about all the duties are performed, but a minor duty on the contract remains.
They will see the contact incomplete, but a minor breach does not discharge the duties of the non breaching party. They could be sued for duties performed, less the cost of completing the work.
Bob hires Bill to paint a fence and install a lock. Bill paints the fence but does not install the lock in time. Bob must pay Bill for the completed portion of the job, less the cost of installing the lock.

6. Remedies for a minor breach
Generally the only remedy is money!
The amount of damages would be the cost of completing the contract.
The amount would be recovered by a lawsuit if the victim already paid

7. Remedies for a major breach
If the breach is classified as a major breach, the injured party need not continue performing the duties defined by the contact. In addition, the victim would be able to choose the following remedies:
Rescission and Restitution: Canceling the contract and returning whatever has been received under it.
Money Damages: The payment of money to compensate for injury
Specific Performance: A court order commanding the breaching party to perform what was promised in the contract.

8. Case studies!