Damages in a breach of contract case in Tulsa County are monetary compensation awarded to the injured party to make them whole after the other party has failed to fulfill their contractual obligations. The types and amounts of damages awarded depend on the specifics of the breach and the losses incurred. Below is an overview of the different types of damages that can be awarded in a breach of contract case.
Types of Damages
Oklahoma law explains your options and their criteria. Some of the most commonly awarded types of damages include:
Compensatory Damages:
- Purpose: Compensates the non-breaching party for the losses directly resulting from the breach of contract. This is also called actual damages because of the breach.
- Categories:
- Direct/General Damages: The immediate and natural consequences of the breach. For example, if a contractor fails to complete a project, direct damages include the cost of hiring another.
- Consequential/Special Damages: These are indirect losses that result from the breach but were foreseeable when making the contract. For example, if the delay in the project causes the non-breaching party to lose business opportunities. For consequential damages notice to the breeching party before the breach is critical.
Liquidated Damages:
- Purpose: To provide a pre-determined amount in the event of a breach, as specified in the contract.
- Enforceability: Must be a reasonable estimate of the actual damages at the time of making the contract.
Nominal Damages:
- Purpose: To recognize that there was a breach, even without monetary loss.
- Amount: Typically, a small, symbolic amount awarded to acknowledge the breach.
Punitive Damages:
- Purpose: To punish the breaching party for particularly egregious or willful conduct and to deter similar behavior in the future.
- Availability: Oklahoma courts rarely award punitive damages in these cases.
Restitution:
- Purpose: To restore the non-breaching party to the position they were in before making the contract.
- Calculation: This involves returning any benefit or value conferred to the breaching party. For example, if one party paid for services that were not performed, they would be entitled to restitution of the amount paid.
Rescission:
- Purpose: To cancel the contract and restore the parties to their positions before the contract was formed.
- Application: This remedy is appropriate when there is a fundamental breach that defeats the purpose of the contract.
Calculating Damages in a Breach of Contract
To prove damages, the non-breaching party must provide evidence of the losses incurred due to the breach, such as invoices, receipts, contracts, expert testimony, and financial records. However, damages must have been foreseeable at the time of writing the contract and the non-breaching party must show that the damages were a probable result of the breach.
The non-breaching party has a duty to mitigate (reduce) their damages and must take reasonable steps to minimize the losses resulting from the breach. If the non-breaching party fails to mitigate their damages, the court may reduce the amount of damages awarded accordingly.
Tulsa County Contract Lawyers
In Oklahoma, damages in a breach of contract case can include compensatory damages (both direct and consequential), liquidated damages, nominal damages, punitive damages, restitution, specific performance, reformation, and rescission. The type and amount of damages awarded depend on the specifics of the breach and the losses incurred. The non-breaching party must prove their damages and may have a duty to mitigate their losses. If you’re trying to seek damages, our team here at Tulsa County Lawyers Group will guide you through the process. If you need help, contact us today by calling (918) 379-4864 or reach us online for a consultation.
