A breach of contract occurs when a party to a contract fails to fulfill obligations set forth in the agreement. The breach may take various forms, and the adversely affected party may be entitled to legal relief. Under the law, a party may seek to recover damages resulting from the breach, specific performance of the contract, or cancellation of the contract and restitution by the breaching party.
Different kinds of damages are available for a non-breaching party in such a dispute. Compensatory damages pay the non-breaching party benefits specifically owed to them under the terms of the agreement. Punitive damages may be awarded as a punishment for particularly egregious, intentional acts against the non-breaching party. Other forms of damages that may be available are nominal damages, which are awarded when a breach has occurred but no actual monetary loss resulted from the breach, or liquidated damages, which may be awarded if the parties included an agreement defining such remedies for breach in the contract.
A party may also seek specific performance of the contract. The court may order a breaching party to perform its obligations as defined in the contract. Finally, a non-breaching party may seek cancellation of the contract and restitution for services provided that benefitted the breaching party. For example, an employer who breaches employment contracts may be required to pay restitution to employees for services provided by the employees.
Employees in Indiana who believe they may be entitled to remedies for breach of an employment contract have several different legal avenues for relief. An attorney well-versed in Indiana employment law may be able to assist in navigating this complex area of the law and ensuring that the employees’ legal rights are protected.
