By Attorney Jaclyn Kallie and Law Clerk Nathan Froemming
Contracts are important for any business, and if the terms of a contract are not followed, this can have a significant impact on a company’s bottom line. If a party is not meeting their contractual obligations, you might wonder what options you have. In a breach of contract case, you may be able to seek multiple types of remedies, including:
1. Liquidated Damages
Liquidated damages are available when the contract at issue has a clause setting damages in the event of a breach. While this may seem like a straightforward provision, there are often arguments that can be made that would call into question whether liquidated damages are appropriate under the specific circumstances in your case. For example, the contract may provide for liquidated damages only under certain types of breach.
2. Compensatory Damages
Compensatory damages are awarded to the non-breaching party. The goal of compensatory damages is to put the non-breaching party in the same position they would be in had the other party performed its obligations under the contract.
3. Specific Performance
Specific performance is another type of remedy that may be available to the non-breaching party. Under specific performance, the breaching party would be ordered to adhere to its obligations under the contract. Specific performance is not available in every case. Sometimes, performance as per the contract is impossible. In other cases, a court may be satisfied with a “substantial” cure, meaning that the breaching party need not perform exactly as how the contract set forth; rather, the breaching party will only have to take actions so that it is no longer in “material” breach.
Call a Milwaukee, WI Breach of Contract Lawyer
If you are in a situation in which someone is not performing as described in a contract, you should seek legal counsel. A skilled Milwaukee, WI commercial litigation attorney will help establish that a breach has occurred and work with you to determine what remedies are available to you.
With a contract case, there are two sources that will control: the contract and Wisconsin law. Wisconsin law will fill in any gaps left out of the contract, and it can also be used to define the terms of art contained in the agreement. Contract cases can be complex, and your rights will be best protected by an experienced lawyer. Give our firm’s commercial litigation lawyers a call today at 414-271-1440.
Sources:
https://www.wisbar.org/NewsPublications/WisconsinLawyer/Pages/Article.aspx?Volume=83&Issue=10&ArticleID=2031
Wis. Stat. §§ 402.716-718