Every year, Florida small business owners enter into thousands of contracts. These agreements can be essential to helping these enterprises grow and thrive. When small business contracts work as expected, both parties can fulfill their obligations as promised. However, there can be circumstances when one or both side commits a breach of contract. In this situation, it’s important to understand breach of contract damages.
What is a Breach of Contract?
In Florida, when parties want to enter into a contract, there is an offer and acceptance and the exchange of consideration. However, to be valid, a Florida business contract must comply with federal and state law and be entered into voluntarily. Once the parties have created a valid contract, the agreement’s terms are legally binding and enforceable. If a party fails to meet one of the agreed-upon conditions, they will be in breach of contract.
What Happens When a Party Breaches a Florida Contract?
When one or both parties breach a Florida contract, the injured party may be able to seek damages. Not every breach will end up in court, but it is possible that this type of issue could result in a lawsuit. It’s also possible that the two sides will be able to work out their differences without resorting to litigation. However, time is of the essence with these types of disputes. If you have a breach of contract issue, you should contact an experienced Florida business attorney to evaluate the situation and determine your options.
Breach of Contract Damages
A material breach is a type of breach of a term that is essential to an agreement. By contrast, an immaterial breach would be something minor or technical such as a typo, that would not interfere with the essence of the agreement. If a party to a Florida contract commits a material breach, the injured party has the option of pursuing damages by filing a Florida breach of contract lawsuit.
The amount and type of damages will vary by party and contract terms. Here are some of the remedies and damages an injured party may seek in a breach of contract dispute:
Rescission of the Contract
Recession is a remedy that involves the parties dissolving their contract. This option lets both sides abandon the agreement and end their obligations to one another.
Damages for Breach of Contract
A party suing another for breach of contract can pursue various types of damages. However, compensatory damages are the primary types of damage sought in this situation.
These types of damages fall into two categories: General and Special damages.
General Damages are those connected with the financial loss incurred by the injured party. For instance, if a supplier failed to deliver an order to a manufacturer and the manufacturer had to buy replacement goods, they may be able to recover the expenses associated with having to get the goods elsewhere.
Special or Consequential Damages are those damages that occur because of the breach. Unlike general damages, these damages are not from the breach itself. Instead, they occur as a consequence of the breach.
Punitive Damages
Punitive damages are a remedy used to punish the wrongdoer and dissuade others from engaging in the same type of conduct. These damages are usually reserved for extreme cases when the breaching party has taken outrageous action.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.