A company has breached the contract between it and your North Carolina company, and it cost you. In fact, your bottom line has taken such a hit, you may be wondering whether your business will even recover. According to FindLaw, you may be able to recover your financial losses through a breach of contract lawsuit.
There are certain types of damages that a court may award to compensate you for your losses.
Compensatory damages
Most courts will determine how much it will take for you to have another company perform the work that the first company did not complete, and award you that much. So, for example, if you hired a company to build a new retail location, that company would have to pay you the amount that it would take for another company to complete the building.
Restitution
Sometimes, a judgment requires the breaching company to simply pay back the money it has received for services. If work has not progressed very far yet, the judge may decide you are better off just getting your money back and starting over with a new company.
Punitive damages
Suppose that in using substandard materials, the construction company left you with an unsafe building. Consequently, someone was injured and has sued your business. In this case, the judge may determine that it was morally reprehensible for the company to cut corners and put people at risk, and may order punitive damages, which are intended to punish the construction company for its actions.
This information is general in nature and does not encompass all of the factors that may be present in any given case. Therefore, it should not be interpreted as legal advice.
