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There are remedies under employment law for breach of contract

| Oct 11, 2018 | employment law |

Contracts form the backbone of the business world. Without them, businesses in California couldn’t rely on their supplies, which would make meeting demand difficult, if not impossible. There would also be a wide swing in prices since manufacturing costs wouldn’t be controlled, and businesses and individuals could go back on their word at the last minute without ramifications. In essence, without enforceable contracts, the business world would be chaotic.

So, when businesses or individuals come to an agreement and memorialize a bartered-for exchange of goods or services, everything should go as planned, right? Ideally, yes. But, as most of you know, far too often the terms of a contract are broken. This is known as a breach of contract. Fortunately, when a party fails to fulfill any of the terms under a contract and breach has occurred, it may be possible to take legal action to remedy the situation.

One remedy that may be available when a contract is breached is for the wronged party to seek compensation for damages suffered. This is the most commonly sought remedy for breach of contract, and it generally seeks to put the wronged party back in the same position it would have been in if the terms of the contract had been carried out. The second remedy for a breach of contract is specific performance. In instances where money will not suffice, a breaching party can be court ordered to carry out the terms of the contract. This is usually utilized in cases where the subject of the contract is unique or rare. Lastly, when a breach of contract occurs, a party can seek the cancellation of the contract with restitution. Here, the contract is rescinded and the breaching party pays to put the other party in the position it was in prior to entering the contract.

On its face, dealing with a breach of contract may seem relatively easy. In reality, though, these matters can be enormously complex. Making matters even more challenging is the fact that there is often a lot at stake when dealing with a case of breach of contract. For this reason, regardless of which side of a breach issue you find yourself on, you may want to consider protecting yourself as a much as possible, starting with an understanding of your rights under employment law.