Litigation involving an alleged breach of contract can be complex. When one party fails to fulfill their obligations as outlined in a contract, this can lead to disputes, and the other party may take legal action to enforce the contract’s terms. For those who are involved in civil litigation related to contract disputes in Wisconsin, it is important to understand the options that may be available. An experienced attorney can provide legal representation in these cases, ensuring that issues related to contracts will be handled correctly. Depending on the specific facts of a case, available remedies for a breach of contract may include:

1. Specific Performance

In some breach of contract cases, the court may order the party who breached the contract to fulfill their obligations as originally agreed upon. Specific performance is typically granted when monetary damages would not adequately compensate the non-breaching party for the losses they suffered due to the breach or when the breaching party has the ability to fulfill the contract’s terms.

2. Monetary Damages

The most common outcome when one party has been found to be in breach of contract is an award of damages that will be paid by the breaching party to the non-breaching party. There are different types of monetary damages that may be awarded:

  • Compensatory damages: These are intended to cover the actual financial losses incurred by the non-breaching party because of the breach.

  • Consequential damages: These may address losses that were not directly caused by the breach but were reasonably foreseeable at the time both parties entered into the contract.

  • Liquidated damages: Some contracts include provisions specifying predetermined amounts that will serve as compensation if either party breaches certain terms. If the non-breaching party can demonstrate that the other party committed an applicable breach, these types of damages may be awarded.

  • Punitive damages: In cases where there was intentional misconduct or gross negligence by the breaching party, that party may be required to pay punitive damages as a form of punishment.

3. Rescission and Restitution

In certain cases, the court may order the rescission of the contract, which essentially cancels it out or places the parties back into the position they were in before they formed a contract. This is typically done when one party can prove that they entered into the contract based on fraudulent or misleading information provided by the other party. In addition to rescission, restitution may also be ordered to restore both parties to their pre-contract positions.

4. Reformation

If a contract contains ambiguous or unclear terms, the court may choose to reform or modify those terms to make them enforceable so they reflect the true intentions of both parties involved. Reformation aims to correct mistakes or resolve ambiguities in  contractual language.

5. Termination

In some cases, breach of contract litigation may result in the termination of the agreement altogether. This means that neither party will be required to fulfill their obligations under the contract moving forward.