There are several options available after a breach of contract. Business leaders frustrated by contract non-compliance can invoke penalty clauses and request financial compensation from the party that violated the agreement.
They can also sometimes request damages or take their dispute to civil court to ask a judge to uphold the terms established in the initial contract. Such solutions can work in some cases, but they may not be the best option in others.
A breach of contract can destroy the working relationship between parties. A business leader who wants to address a breach of contract issue may want to ask the courts to cancel or set aside an otherwise valid contract.
Rescission terminates contractual obligations
There are numerous remedies or legal solutions available after a breach of contract. As previously mentioned, plaintiffs can ask for an injunction or order of specific performance to enforce a contract. They can ask a judge to award damages or to enforce penalty clauses. They can also request contract rescission.
Contract rescission is essentially the invalidation of the agreement. When one party requests rescission, they essentially ask the judge to set aside the contract and to terminate any obligations that one party may have to the other. After contract rescission, the plaintiff could potentially seek a refund of the amount paid to the other party and no longer has to worry about any legal obligations to the business or individual who violated the contract.
Rescission can be a helpful solution for a business contract breach. Reviewing the nature of the breach and the contract itself with a skilled legal team can help those preparing for contract litigation select the best solution available.