There's Been a Breach in My Business Contract. Now What? | O'Keeffe O'Brien Lyson Attorneys

There’s Been a Breach in My Business Contract. ? Now What?

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A breach of contract occurs when one of the two parties involved breaks their end of a contract. There are many instances in which this can occur, which is why breach of contract suits are quite common in small claims courts. Continue reading to learn your legal options when a breach of contract occurs.


The most common resolution to a breach of contract is compensation in the form of money from the breaching party to the non-breaching party. This is what is referred to as “damages”. There are four types of damages:

  1. Compensatory damages: The breaching party must reimburse the non-breaching party in order to compensate for any monetary losses.
  2. Liquidated damages: In this case, there are predetermined damages specified within the contract that the breaching party must pay to the non-breaching party.
  3. Punitive damages: In this case, money will be given as payback for offensive behavior and actions performed by the breaching party.
  4. Nominal damages: A small amount of money will be awarded to the non-breaching party by the breaching party when the breaching party has not suffered substantial injury or lost.

Specific Performance

Specific performance occurs when the court orders each person to follow through with their original agreement. This situation often occurs when the original contract included a situation that could not be easily compensated by a monetary award.


One or both of the parties may choose to cancel the contract. Once a contract is cancelled, the contract is void and will relieve all parties of the obligations previously determined by the contract.


Restitution may be chosen as a settlement in a contract breach. This means the non-breaching party is restored to the position it was in prior to the breach of contract.

Contact an Attorney

If you are in the middle of a contract breach, O’Keeffe O’Brien Lyson Attorneys, assists owners of all types of business enterprises with many legal questions and concerns. Contact our experienced Fargo business attorney Stephen Welle directly by email, or call our firm at 701-235-8000 or toll-free 877-235-8002 to set up an appointment.