Guide to Finding Remedies for Breach of Contract

two people signing a contract

Contractual agreements are a fundamental part of doing business – for small businesses, fortune 500 companies, and everything in between. Businesses enter into contracts when they hire a new employee, acquire a loan, purchase commercial real estate, or when getting a new supplier.

Contracts protect the parties involved by setting rules and guidelines. When one party fails to meet the contract terms, it is considered a breach of contract. If a breach of contract significantly impacts your business, there are various options available to help you seek ramifications. Our New Jersey breach of contract attorneys explains the different steps a business can take to get compensation after their contract has been breached.

Write a Demand Letter

The first course of action that many businesses make is to write a demand letter. A demand letter is a request to settle a claim after a contract has been breached. Businesses can send a demand letter before a lawsuit to resolve disputes outside of court. In the demand letter, you can provide an overview of the organization’s breach and remind the company of its obligations under the contract. In some cases, a demand letter is sufficient to have the company fulfill its obligations.


Another common remedy to a breach of contract is mediation. Mediation is a form of alternative dispute resolution that allows parties to resolve disputes outside the court. The mediation process often includes a third-party mediator who meets with you and the other parties involved to discuss the contract terms. The mediator helps facilitate the discussion while remaining neutral. The goal is to find a remedy or common ground that both parties agree.

File a Lawsuit

Lawsuits are a common method to resolve contractual disputes – especially if a breach of contract significantly impacts one of the parties. Filing a lawsuit can allow you to build a solid case and have the judge resolve the matter. If you win your contractual dispute in court, the judgment entitles you to certain remedies. For example, if a company loses a lot of money because of a breach of contract and files a lawsuit, it can be awarded monetary damages if it wins. In other cases, a judge may also require the company to fulfill a contractual obligation by completing the job or service according to the contract.

Remedies for a Breach of Contract After a Lawsuit

When a party breaches a contractual obligation, the breached parties can take legal action to get compensation. There are three remedies for a breach of contract:

  • Damages: The court can request that the party that breached the contract pay damages. This often includes compensatory damages aimed to put the non-breaching party in the position they would have been in if the breach had not occurred.

  • Specific Performance: The court can also request the breaching party to perform the agreed-upon duties listed in the contract. It ultimately forces the breaching party to fulfill their requirements.

  • Cancellation and Restitution: This is when the non-breaching party cancels the contract and decides to sue for restitution if the non-breaching party has given a benefit to the breaching party.

Seek Legal Guidance

Dealing with the aftermath of a breached contract is challenging. For such a reason, it is vital that businesses seek legal guidance when finding the right approach to a breach of contract. Our team at M. Ross & Associates, LLC has helped large and small businesses across New Jersey and New York resolve breached contracts. Our team has the knowledge, skills, and experience needed to guide you through the process and help you achieve your desired results.

Get in touch with our New Jersey breach of contract lawyers today at (201) 897-4942 to schedule a consultation!