What are the remedies for breach of contract?

In California, the remedies for breach of contract are determined by the remedy clause provided in the contract. Depending on the type of breach, possible remedies may include damages, restitution, specific performance, or cancellations and refunds. Damages are the most common remedy for breach of contract. Damages may include compensatory damages, which are intended to make the non-breaching party “whole” by restoring them to their pre-breach financial position. Punitive damages, which are meant to punish the breaching party for their bad behavior and deter future breaches, may also be awarded in some cases. Restitution is a remedy in which the breaching party is required to restore the non-breaching party to their pre-breaching position by returning money or property. Specific performance is a remedy where the court orders the breaching party to fulfill their contractual obligations. This remedy is often used when money or property cannot adequately compensate the non-breaching party. Cancelation and refunds are a remedy used to terminate a contract and return the parties to their original positions. This is often used when the non-breaching party is unable to fulfill their contractual obligations due to the breach. Lastly, the court may also order an injunction, which is a court order requiring the breaching party to stop doing something or to comply with their contractual obligations. This remedy is used to prevent future breaches and further harm.

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