A breach of contract occurs when one party fails to fulfill their obligations under a legally binding agreement. If you are involved in a breach of contract case in Creek County, Oklahoma, understanding the types of damages you may be entitled to is essential. Here, we’ll discuss the types of damages you could be awarded, the factors involved, and how to go through the process.
Types of Damages in a Breach of Contract Case
There are a few different types of damages you can seek in a breach of contract case, each having its own criteria:
Compensatory Damages
- Purpose: To compensate the non-breaching party for the loss directly resulting from the breach.
- Calculation: Based on the actual loss incurred, such as lost profits, additional costs incurred, or other financial losses that directly result from the breach.
Consequential Damages
- Purpose: To cover losses that are not directly a result of the breach but are a foreseeable result of the breach.
- Requirement: The breaching party must have known (or had reason to know) that such damages would result from the breach at the time the contract was made.
Liquidated Damages
- Purpose: Agreed-upon damages specified within the contract itself, to be paid in the event of a breach.
- Legality: Liquidated damages must not be punitive in nature; they should be a reasonable estimate of the actual damages that might result from a breach.
Nominal Damages
- Purpose: Awarded when a breach occurred, but the non-breaching party cannot prove significant actual loss.
- Amount: Typically a very small monetary amount.
Punitive Damages
- Purpose: To punish particularly egregious behavior and deter similar conduct in the future.
- Applicability: Not commonly associated with breach of contract unless tied to a tort claim involving the same set of facts.
You should look at all of the options and their criteria before deciding which is best for you. Seeking legal counsel can also be beneficial, as a qualified legal professional can walk you through your options.
Factors Affecting Damages
Several factors can influence the type and amount of damages awarded in a breach of contract case:
- Foreseeability: To award consequential damages, the losses must have been foreseeable when writing the contract. This means that both parties should have anticipated that such damages could result from a breach.
- Mitigation: The non-breaching party must mitigate their losses, meaning they must take reasonable steps to reduce the damages. Failure to mitigate can reduce the amount of damages awarded.
- Causation: There must be a direct link between the breach of contract and the damages claimed. The non-breaching party must prove that the breach caused the losses they are seeking to recover.
- Certainty: You must be able to prove damages with reasonable certainty. Speculative or uncertain damages are generally not recoverable.
The court will look at all of these factors before making their final decision.
Steps to Take in a Breach of Contract Case
If you’re pursuing a breach of contract case, there are certain steps you must take:
- Consult an Attorney: Seek legal advice from an experienced contract attorney who can assess your case as well as guide you through the legal process.
- Document the Breach: Keep detailed records of the contract, correspondence with the breaching party, and any evidence of the breach and resulting damages.
- Mitigate Damages: Take reasonable steps to minimize your losses and document these efforts.
- File a Lawsuit: If negotiations fail, your attorney can then help you file a lawsuit in Creek County Court, seeking the appropriate damages.
By following these steps, you stand the best chance at receiving a favorable outcome.
Creek County Breach Of Contract Attorneys
In Creek County, the types of damages available in a breach of contract case can vary depending on the circumstances. Understanding the different categories of damages and the factors that influence their award is crucial for effectively pursuing a claim. Consulting with a knowledgeable business law attorney can help you navigate the complexities of contract law and ensure that you receive the compensation you deserve. Our team at Creek County Attorneys can help you through the process and advocate for you. Call us at 918-209-3709 for a free and confidential consultation or ask a legal question here.
