What are the remedies for breach of contract under Admiralty Law?

Under Admiralty Law in New Mexico, there are two basic remedies for breach of contract: rescission and damages. Rescission occurs when one party to a contract decides to cancel it due to the other party not fulfilling their obligations. This restores both parties to their original positions before the contract was formed. Damages is the most common remedy used when a party has failed to live up to their obligations under a contract. The non-breaching party may be compensated for any losses they suffered as a result of the breach. This can include monetary damages, such as lost profits, or non-monetary damages, such as emotional distress. The court may also impose a penalty, called liquidated damages, when the terms of the contract specifically state what should happen if there is a breach. In New Mexico, liquidated damages are usually not allowed unless they are “reasonable in amount.” Finally, the court may award an “injunction”, which is essentially an order instructing the breaching party to do something or to refrain from doing something. This might include stopping a method of business that is causing harm to the non-breaching party. Admiralty Law in New Mexico therefore provides a range of remedies for breach of contract, allowing the non-breaching party to be compensated for any losses incurred.

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