considered minor. For example, the breaching party may be late on delivering goods or services promised
under a contract that does not specify a firm delivery date and that doesn’t state that time is of the essence. In
this case, a reasonably short delay would likely only be considered a minor breach of the contract.
Consequently, the non-breaching party would still be required to perform as pursuant to the contract.
However, damages may be available to them if they suffered some harm as a result of the delay.
Remedies
Typically, the remedies that will be available if a breach of contract is found are money damages, restitution,
rescission, reformation, and specific performance.
Figure 7.3
When there is a breach of contract, the courts might get involved to help determine the remedy.
(Credit: succo/ pixabay/ License: CC0)
Money damages include compensation for financial losses caused by the breach.
Restitution restores the injured party to status quo or the position they had prior to the formation of the
contract, by returning to the plaintiff any money or property given pursuant to the contract. This type of relief
is typically sought when a contract is voided by courts due to a finding that the defendant is incompetent or
lacks capacity.
Rescission or reformation may be available to parties who enter into contracts by mistake, fraud, undue
influence, or duress. Rescission terminates the duties of both parties under the contract, while reformation
allows courts to equitably change the contract’s substance.
Specific performance compels one party to perform the promises stated in the contract as nearly as
practicable. Specific performance is only mandated when money damages do not adequately compensate for
the breach. Personal service, however, may not be used to compel specific performance, since doing so would
Chapter 7 Contract Law
81