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  • Writer's pictureRolanzo White, Esq.

Breach of Contract Remedies

Updated: Apr 15, 2023

Breach of contract is a common issue in the world of business and law. When one party fails to fulfill its contractual obligations, the non-breaching party can seek remedies. This blog post will delve into the remedies available for breach of contract in Maryland, Washington D.C., and New Jersey. Understanding these remedies will provide you with valuable knowledge in navigating the legal landscape of these jurisdictions.


Maryland

Damages, Rescission, and Specific Performance


In Maryland, remedies for breach of contract encompass damages, rescission, and specific performance. Damages restore the injured party to the financial position they would have enjoyed had the contract been executed as agreed. These damages can be classified as compensatory, consequential, or punitive, depending on the nature of the breach and its impact.


Rescission allows the aggrieved party to cancel the contract and regain what they have given up. This remedy aims to undo the effects of the contract and restore both parties to their pre-contractual positions.


On the other hand, specific performance is an equitable remedy that forces the breaching party to fulfill their contractual obligations. This remedy is typically granted in cases where monetary damages are insufficient or when the subject matter of the contract is unique and irreplaceable.


 

Washington D.C.

Affirmation, Repudiation, Damages, and Rescission


In Washington, D.C., the remedies for breach of contract are similar to those in Maryland. A non-breaching party has the option to either affirm the contract and seek damages or repudiate the contract and request rescission.


Affirmation of the contract allows the injured party to continue with the contractual relationship while seeking compensation for losses incurred due to the breach. Conversely, repudiation involves terminating the contract and pursuing rescission, effectively restoring the parties to their pre-contractual positions.

 

New Jersey

Specific Performance, Damages, and Forfeiture of Deposit


To successfully establish a breach of contract claim in New Jersey, a plaintiff must prove the existence of a valid contract, the opposing party's failure to perform, and the damages suffered as a result of the breach. Remedies available in New Jersey include specific performance, damages, and forfeiture of a deposit.


As in Maryland and Washington D.C., specific performance and damages are primary remedies for breach of contract in New Jersey. However, the forfeiture of a deposit serves as an additional remedy, which may be applicable in certain circumstances. This remedy allows the non-breaching party to retain the deposit paid by the breaching party as a form of compensation for the breach.


 

Conclusion


Understanding the remedies available for breach of contract in Maryland, Washington D.C., and New Jersey is crucial for individuals and businesses operating in these jurisdictions. While the remedies may vary slightly between these locations, damages, rescission, and specific performance are the most common. It is essential to consult with an experienced attorney when dealing with breach of contract issues, as they can help you determine the most appropriate remedy and guide you through the legal process.

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