What remedies can be sought for a breach of contract?

Breach of contract allows a party to seek various remedies to address the harm caused by the breach. The remedies commonly available include damages, specific performance, and rescission.

Damages are a monetary compensation awarded to the non-breaching party for losses incurred due to the breach. Their primary goal is to put the injured party in the position they would have been had the breach not occurred.

Specific performance is a remedy that compels the breaching party to fulfill their contractual obligations. This is particularly applicable in cases where monetary damages are inadequate, such as in contracts involving unique items or real estate.

Rescission is the annulment of the contract, which restores both parties to their positions before the contract was made. This remedy is usually sought when one party has been misled or when the contract is considered void or voidable.

In contrast, options that suggest limited remedies such as only injunctions or negotiations fail to encompass the full range of legal responses available for breaches of contract. Additionally, penalties are generally not enforceable as a remedy in breach of contract cases, as the focus is on compensating the injured party rather than punishing the breaching party. Thus, the comprehensive nature of B—covering all three key remedies—makes it