What are the remedies for breach of contract?

In Tennessee, the remedies for breach of contract can vary depending on the specific case and the terms of the contract. Generally, when one party has breached a contract, the other party is given the opportunity to seek compensation for any damages they have suffered as a result. The most common remedy for breach of contract is known as “compensatory damages”. This type of damages is meant to restore the non-breaching party to the same financial position that they were in prior to the breach. This is generally determined by taking the contract-specified value of the breach and subtracting any other income or expenses that were sustained in relation to the breach. Another possible remedy for a breach of contract is known as “expectation damages”. In this case, the non-breaching party may be awarded an amount of money that would have been received had the contract been completed in a timely manner. This takes into consideration any profits or benefits that may have been lost due to the breach. Finally, a court can also award “liquidated damages” to the non-breaching party. This occurs when an estimate of damages is made ahead of time, often included in the contract language itself. These damages are usually in the form of a set amount of money that is to be paid if the contract is breached.

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