In Florida, a breach of contract takes place when one party to a contract fails to perform one or more contractual obligations. A breach of contract can occur between individuals or business entities. Often, a breach of contract leaves the non-breaching party in a difficult position, and it may result in a financial loss. In this article, we examine penalties for breach of contract in Florida.
Breach of Contract Elements
The elements of a breach of contract include the following:
- The existence of a legally valid contract
- A breach of that contract
- The breach caused damages
Common penalties/remedies for breach of contract in Florida include:
Damages: A common remedy for breach of contract in Florida is monetary damages. As in other types of cases, there are typically many different types of damages available in breach of contract cases, including:
- General or compensatory damages: These types of damages are intended to put the non-breaching party in the position they would have been in had both parties performed their duties as required by the contract.
- Special damages: Special damages are awarded when the non-breaching party experiences an indirect loss from a contract breach. However, these types of damages aren’t awarded as often as compensatory damages.
- Liquidated damages: Sometimes, a contract stipulates the amount of damages that a non-breaching contract will receive in case of a breach. These are called liquidated damages.
- Rescission: When there aren’t any other remedies available, the court may order rescission. With recission, both parties to an agreement are relieved of their contractual obligations. Both parties may agree to rescission of an agreement, or it may be unilateral if one party makes a material breach. Fraud is frequently a precursor to the rescission of a contract.
- Restitution: In some breach of contract cases, the most effective way to make an injured party whole is to put that party in the position they were in prior to the execution of the contract. Restitution is sometimes ordered by the court when the contract is not enforceable, or it cannot be fulfilled due to impracticability.
Sometimes, the remedy for a contractual breach is to simply require one party to perform their obligations under the contract. This remedy is known as specific performance. In this situation, monetary compensation would not suffice to make the non-breaching party whole. However, this is a rare remedy because courts are typically reluctant to force contracting parties to fulfill their contractual obligations when they have decided not to do so.
Contact a Florida Breach of Contract Attorney
If you conduct business in the state of Florida, it is important that you have an excellent attorney on your side. At Gueronniere, P.A., Florida breach of contract attorney Grace de la Gueronniere is available to assist you with all of your legal needs. With over ten years of corporate and business law experience, Grace knows what it takes to fulfill your corporate and business law requirements. Please contact us today to schedule a meeting with our talented Florida breach of contract attorney.