What Remedies Are Available When a Contract Is Breached?
Sept. 11, 2025
When you enter into a contract—whether it’s for a business deal, a real estate agreement, or a service—you expect it to be honored. It’s not just about signatures on paper; it’s about trust. So, when the other party doesn’t hold up their end, it can feel like more than a financial setback. It can feel personal.
At Rutkin & Wolf PLLC, we understand how frustrating and overwhelming a breach of contract can be. You may be left wondering what your options are, how to respond, and how to recover what you’ve lost.
Whether you’re dealing with a supplier that failed to deliver, a contractor who didn’t finish a job, or a business partner who walked away from a deal, knowing what remedies are available is the first step toward taking back control.
Let’s take a look at what your legal options may be when a contract has been breached—and how we can help. If you’re facing a breach of contract situation, reach out to us today to discuss your legal remedies.
What Is a Breach of Contract?
A contract is legally binding, and when one party doesn’t fulfill their end of the agreement without a lawful excuse, it’s called a breach. Breaches can vary in severity and impact.
Some might involve late delivery of goods or services; others might be outright failures to perform entirely. Not all breaches require legal action, but many do—especially when money is lost or obligations are disrupted.
There are generally three types of breaches:
Minor breach: A small part of the contract isn’t performed, but the overall agreement is still fulfilled.
Material breach: A significant part of the agreement is broken, affecting the heart of the contract.
Anticipatory breach: One party declares or demonstrates they won’t fulfill their obligations before they’re due.
Each type of breach may lead to different remedies, depending on how much damage was done and how central the broken promise was to the agreement.
What Are Some Legal Remedies for Breach of Contract?
When a contract is breached, the goal is to make the non-breaching party “whole” again. The law provides a variety of remedies, each tailored to different situations. Here's an overview of the primary legal remedies available:
Monetary Damages
This is the most common remedy for a breach of contract and involves financial compensation to cover the losses caused by the breach.
Some common types of monetary damages include:
Compensatory damages: Reimburse actual losses caused by the breach. This includes both direct and indirect losses.
Consequential damages: Cover losses that were foreseeable at the time of the contract, such as lost profits or business opportunities.
Liquidated damages: A pre-agreed amount stated in the contract, enforceable if the actual damages are hard to calculate.
Nominal damages: A small amount awarded when a breach occurred, but no substantial loss can be proven.
Punitive damages: Rare in contract law, but awarded in cases involving fraud or malicious behavior.
If your losses can be quantified, you may be entitled to recover those costs. However, you must show that you tried to minimize your damages and that the losses were directly related to the breach.
Specific Performance
Sometimes, money isn’t enough to fix a breach—especially in cases involving unique goods or real estate. That’s where specific performance comes in. This remedy forces the breaching party to carry out their contractual obligations as originally agreed.
This remedy is often used in:
Real estate sales, where the property is considered unique
Art or collectible purchases
Business acquisitions
Courts may order specific performance when damages aren’t adequate compensation. It’s a powerful remedy, but only granted in certain circumstances.
Rescission and Restitution
If the contract can’t be salvaged, rescission may be the answer. This remedy cancels the contract entirely and aims to restore both parties to their positions before the agreement was made.
In cases where rescission is granted, you may also seek restitution, which means getting back any money or property you gave as part of the agreement. This remedy is ideal when:
There was fraud or misrepresentation.
The contract was entered into under duress.
One party failed to perform a significant part of the deal.
Rescission offers a clean break when continuing with the contract isn’t feasible or fair.
Reformation
When the issue isn’t that someone failed to perform, but rather that the contract doesn’t reflect what both parties actually intended, reformation may be the right solution.
This remedy allows a court to rewrite the terms of a contract to reflect the true agreement between the parties. It’s commonly used when:
There was a mutual mistake in the drafting.
A clerical error changed the meaning.
One party misrepresented a term, and the other relied on it in good faith.
Reformation doesn’t cancel the contract—it modifies it so that it’s accurate and enforceable.
Equitable Remedies vs. Legal Remedies
Legal remedies are based on monetary damages, while equitable remedies involve court-ordered actions or changes to the contract. Courts often consider equitable remedies when money alone won’t provide a fair outcome.
Examples of equitable remedies include:
Specific performance
Rescission
Reformation
Injunctions (to prevent certain actions)
Equitable remedies require clean hands, meaning the party requesting them must not have also breached the contract or acted unfairly. They’re granted at the court’s discretion, depending on fairness and feasibility.
Factors Courts Consider in Awarding Remedies
Not all breaches lead to the same outcomes. Courts consider several factors when deciding what remedy is appropriate.
Some key factors include:
The severity of the breach: Was it minor or material?
The intent of the breaching party: Was it accidental or intentional?
The foreseeability of the damages: Could the loss have been anticipated?
The possibility of mitigation: Did the non-breaching party take reasonable steps to reduce their loss?
Contractual terms: Are there clauses that limit or define the available remedies?
These factors help the court determine what’s fair—and what will effectively compensate the harmed party.
Contractual Remedies Built Into the Agreement
Some contracts include their own remedies, which can make the legal process more efficient. These provisions often define what happens in the event of a breach.
Common contractual remedies include:
Liquidated damages clauses: Pre-set damages if a breach occurs.
Termination clauses: Define when and how the agreement can be ended.
Dispute resolution clauses: Require mediation or arbitration before going to court.
Limitation of liability clauses: Cap the amount of damages that can be claimed.
If your contract contains these provisions, they may limit or guide the remedies available to you. It’s important to review these carefully before pursuing legal action.
Defenses to a Breach of Contract Claim
Before moving forward with a breach of contract case, it’s important to be aware of defenses the other party may raise.
Common defenses to breach of contract include:
The contract was invalid: Due to fraud, duress, or incapacity.
Impossibility of performance: Events outside their control made the contract impossible to fulfill.
Lack of consideration: There was no value exchanged.
Waiver or prior breach: You may have already excused their non-performance or breached the contract yourself.
Statute of limitations: The time limit for filing a claim has expired.
Knowing these defenses helps you prepare for challenges and strengthens your claim in court or during settlement discussions.
What Steps Should You Take If a Contract Is Breached?
If you suspect or know that a contract has been breached, quick action can make a significant difference in your recovery.
Steps to take include:
Review the contract: Understand your rights and any built-in remedies or dispute clauses.
Document the breach: Keep records of communications, missed deadlines, and financial losses.
Mitigate damages: Try to minimize your losses where possible.
Consult with an attorney: Legal guidance is essential for evaluating your options and protecting your interests.
Taking these steps helps build a strong case and preserves your ability to claim damages or enforce the agreement.
Speak to a Skilled Breach of Contract Attorney
When contracts are broken, time is of the essence. The longer you wait, the harder it may be to recover damages or get the outcome you deserve. Whether you need to recover financial losses, seek specific performance, or explore the possibility of canceling an unfair agreement, legal guidance can make all the difference.
At Rutkin & Wolf PLLC, we’ve helped clients across White Plains, the Bronx, New Rochelle, and Lower Westchester County pursue meaningful remedies for breached contracts. We’ll review your agreement, assess your legal options, and pursue a solution that protects your interests and rights.
Don’t let a broken contract put your finances or future at risk. Reach out to us today to schedule a consultation and explore your next steps.