As businesses and individuals enter into agreements with each other, they often rely on contractual terms to ensure that each party is held accountable for fulfilling their end of the bargain. However, even with the best intentions, there may be cases where one party fails to fulfill their contractual obligations, resulting in a breach of contract. In such instances, the injured party may seek damages to mitigate the losses caused by the breach. While there are various forms of damages available for a breach of contract, there are certain types that are not ordinarily available. Here, we’ll explore those types of damages.

Consequential damages

Consequential damages, also known as special or indirect damages, refer to losses incurred by the injured party that are not a direct result of the breach of contract. They are damages that arise as a consequence of the breach of the contract rather than from the actual breach. For example, if a supplier fails to deliver goods to a customer as per the terms of their agreement, the customer may suffer losses due to delayed production and lost revenue. However, if the same customer lost a major client due to the delayed delivery, the consequential damages related to the lost client may not be recoverable.

Punitive damages

Punitive damages are granted to punish the breaching party for wrongful actions and to deter them from engaging in similar conduct in the future. However, these damages are not typically available in a breach of contract case unless there is evidence of fraud, malice, or willful misconduct.

Emotional distress damages

Emotional distress damages are awarded to compensate the injured party for the emotional impact of the breach. For example, if a contractor fails to complete a project as agreed, the client may be stressed or anxious due to the delay. However, emotional distress damages are generally not available for a breach of contract case, as the focus is on monetary compensation for actual losses.

Attorney fees

In most cases, each party is responsible for their own attorney fees. However, in some instances, the contract may include a provision that allows the prevailing party to recover their attorney fees. This provision is often added to discourage frivolous lawsuits.

Conclusion

In conclusion, while there are various forms of damages available for a breach of contract, consequential damages, punitive damages, emotional distress damages, and attorney fees are not ordinarily available. It is important to understand the terms of a contract and the available remedies in the event of a breach to ensure that you protect your rights and interests. If you are unsure about the terms of a contract or how to seek damages after a breach, it is best to consult with a legal professional.