Text 2 Remedies the Injured Party Has

When one party to a contract refuses to perform or fails to perform properly, the other party suffers a legal injury. The injured party is entitled to be “made whole” and to get “the benefit of the bargain” as made. Accordingly, such a party may seek any one of several remedies for the breach. A remedy is the means to enforce a right or to compensate for an injury. Remedies vary with the type of contract and differ in effect or result.

Sometimes one party may not wish to enforce a contract or a provision in it. When one intentionally and voluntarily gives up a contractual right, the right is said to be waived. Reasons for waivers are many in number: the damages may be very limited; the victim may be glad to be free of any obligations; the legal cost of suing may be prohibitive; the outcome of a lawsuit may be too uncertain; or the defendant may be judgment-proof.

Remedies for breach of contract include the following:

1 rescission of the contract, either voluntarily or by court order;

2 cancellation of the contract (in cases of sales of goods);

3 recovery of monetary damages;

4 specific performance or an injunction.

The Injured Party Has the Right of Rescission

If one party breaches the contract by failure to perform, the other party may usually consider any obligation as discharged.

This remedy is the right of rescission. Each party returns any consideration received and gives credit for what cannot be returned. The entire contract must be rescind, not just a part of it. It may be done by voluntary agreement of the parties, or it may be done by court order at the request of the injured party. Neither party gets damages.