Kinds of damages
Kinds of damages covered in a contract -
●Compensatory Damages - Money to reimburse for costs to compensate for your loss.
●Consequential and Incidental Damages - Money for losses caused by the breach that were
foreseeable. Foreseeable damages means that each side reasonably knew that, at the time of the
contract, there would be potential losses if there was a breach.
●Attorney fees and Costs - Only recoverable if expressly provided for in the contract.
●Liquidated Damages - These are damages specified in the contract that would be payable if
there is a fraud.
●Specific Performance - A court order requiring performance exactly as specified in the contract.
This remedy is rare, except in real estate transactions and other unique property, as the courts
do not want to get involved with monitoring performance.
●Punitive Damages - This is money given to punish a person who acted in an offensive and
egregious manner in an effort to deter the person and others from repeated occurrences of the
wrongdoing. You generally cannot collect punitive damages in contract cases.
●Rescission - The contract is canceled and both sides are excused from further performance and
any money advanced is returned.
●Reformation - The terms of the contract are changed to reflect what the parties actually