There are many businesses in Ohio and they provide various services and products to the people living in the state as well as other businesses. In exchange for the products and services they provide, they expect to be paid. Also, many times in order to provide certain products and services they rely on other businesses to provide them the necessary parts and equipment to complete their work. So, many businesses’ success are intertwined with others.
They rely on each other to follow their promises and to ensure this happens and to state the terms of their agreement, contracts are drafted and signed by the parties. If the businesses do not follow through with their end of the agreement, it can have negative effects on the other business or customer. In situations when a business breaches a contract the non-breaching business may be able to recover damages based on how the breach affected the business.
Types of Damages for Breach of Contract
The non-breaching business could seek specific performance, which means they could force the other business to fulfill their end of the contract. They could also try to cancel the contract and seek restitution for the breach.
They may also seek monetary damages. This could be compensatory damages, which is money needed to put them back to the position they were in prior to the breach. They could also potentially seek punitive damages which are meant to punish a business for any intentional wrongdoing, but these are not typical for business contracts. Also, sometimes the contract itself will state specific damages in the case of a breach and the non-breaching company could seek those damages.
Contracts are an important part of running businesses in Ohio. It is important that they are well written and specifically state what is expected of both parties to the contract. When one party does not do what they are supposed to, it can cause damages and the non-breaching party can seek reimbursement for among other remedies. These can be complicated matters and consulting with experienced attorneys could be beneficial.