Remedies for Breach of Contract Assignment

Remedies for Breach of ContractOne or more remedies may be available to the innocent party in the case of a breach ofcontract. There is also the possibility that arbitration or a streamlined out-of-court alternativedispute resolution procedure is available or required for determining the rights ofthe parties.19-3a Remedies Upon Anticipatory RepudiationWhen an anticipatory repudiation of a contract occurs, the aggrieved person has severaloptions. The individual may (1) do nothing beyond stating that performance at the propertime will be required, (2) regard the contract as having been definitively broken and bringa lawsuit against the repudiating party without waiting to see whether there will be properperformance when the performance date arrives, or (3) regard the repudiation as an offerto cancel the contract. This offer can be accepted or rejected. If accepted, there is a dischargeof the original contract by the subsequent cancellation agreement of the parties.19-3b Remedies in General and the Measure of DamagesCourts provide a quasi-contractual or restitution remedy in which a contract is unenforceablebecause it lacked definite and certain terms or was not in compliance with the statuteof frauds, yet one of the parties performed services for the other. The measure of damagesin these and other quasi-contract cases is the reasonable value of the services performed,not an amount derived from the defective contract.
In cases when a person retains money or when a contemplated contract is not properlyformed and no work is performed, the party retaining the benefit is obligated to makerestitution to the person conferring the benefit. For Example, Kramer Associates, Inc.(KAI), a Washington D.C., consulting firm, accepted $75,000 from a Ghana-based corporation,Ikam, Ltd., to secure financing for a Ghana development project. No contractwas ever executed, and KAI did virtually nothing to secure financing for the project. Restitutionof the $75,000 was required.9When there is a breach of contract, the regular remedy is an award of monetarydamages. In unusual circumstances, when monetary damages are inadequate, the injuredparty may obtain specific performance, whereby the court will order that the contractterms be carried out.The measure of monetary damages when there has been a breach of contract is thesum of money that will place the injured party in the same position that would havebeen attained if the contract had been performed.10 That is, the injured party will begiven the benefit of the bargain by the court. As seen in the Tips v. Hartland Developerscase, the nonbreaching party, Hartland, was awarded the contract price less the cost of completionof the project, which had the effect of giving the builder the benefit of the bargain.

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