Putting you where the deal would have
The usual remedy for breach of contract is money damages meant to place you in the position you would have been in had the contract been performed. That often means the value of what was promised, less what you saved by not having to perform yourself. Consequential damages, such as profits lost on other deals, may be recoverable if they were within the parties' contemplation when the contract was made and can be proven with reasonable certainty. Many contracts limit or exclude consequential damages, and courts generally enforce those clauses between businesses. Punitive damages are rarely available for a breach of contract, even a deliberate one.
Remedies other than money
When money cannot adequately make up for the loss, a court may order specific performance, requiring the other side to do what it promised. This is most common with unique property, especially real estate, and far less common for ordinary services or goods available elsewhere. Some contracts set a liquidated damages amount in advance, which courts generally enforce when it was a reasonable estimate rather than a penalty. In some circumstances a party may seek rescission, unwinding the contract and returning what was exchanged, or restitution for benefits it conferred. Which remedy is available depends on the contract, the nature of the breach, and what happened afterward.
Limits that shape the recovery
A party harmed by a breach is generally expected to take reasonable steps to reduce its losses, and damages that could have been avoided may not be recoverable. In the United States, each party usually pays its own attorney's fees unless the contract or a statute provides otherwise, so a fee clause can matter as much as the damages. In New York, prejudgment interest on contract damages is generally available, and it can add meaningfully to a judgment in a long case. Reading the contract for remedy and limitation clauses is where we begin, followed by quantifying the losses the records can support. That analysis shows which remedies are realistic and how they compare with the cost of pursuing them.
