Remedies for breach of contract liquidated damages
Breach of contract remedies for liquidated damages are available when both parties agree in the contract that a certain amount would be paid in the event of a breach. This is particularly important when litigating breach of construction contracts. Note, however, that one obvious, and often large, expenditure occasioned by a breach—namely, legal expenses in bringing a lawsuit to remedy the particular breach—is not an element of damages, unless the contract explicitly states that it is, and cannot be charged to the defendant. When a contract is broken, monetary damages for breach of contract are a popular remedy. Monetary damages can also be referred to as compensatory damages. The goal of these damages is to make up for the losses suffered by one party when a breach of contract occurs.