What can you seek as part of a breach of contract lawsuit?

Contracts sometimes get described as the lifeblood of businesses, in part because contracts manage everything from the relationship between a company and its employees to the transactions that occur between individual businesses.

You uphold your side of a contract, and you have the reasonable expectation that other parties will do the same. Unfortunately, it’s possible for another business that you work with to fail in their obligations to you.

Such a failure or breach of contract will have financial and practical implications for your business. When another business breaches their contract with your company, you may need to take legal action. What remedies are available if you file a civil suit? 

The plaintiff has the right to request an injunction

Contracts come with different terms. Sometimes, your contract discusses the need for one person or business to perform certain functions or provide materials. Other times, a contract will outline what the other party should not do.

Examples of these kinds of contracts include non-disclosure agreements that bar one party from discussing the business relationship with others. If your issue is not a failure to act but rather acting in a way that violates the terms of a contract, you can potentially ask the courts to issue an injunction that prohibits the defendant from continuing in the behavior that damages your business.

You can ask for the courts to enforce the contract or to award you damages

The courts can sometimes order one party to fulfill their obligations under the contract as part of a breach of contract lawsuit. Other times, simply fulfilling the contractual obligations isn’t enough.

Failure to uphold the contract may have had financial repercussions for your business. Lost revenue and other verifiable financial losses that directly stem from the breach of contract may be recoverable in a lawsuit. Determining what to seek and how to handle a breach of contract will depend on a variety of factors, such as whether or not you want to continue working with the other party.

Discussing the contract and the impact the breach had on your company with someone who has experience in this area of law can give you a better idea of what steps to take to protect your business.