In lawsuits that involve breach of contract, the injured party will often be awarded monetary damages to compensate for the harm caused by the breach. However, in some cases, monetary damages are not sufficient and do not properly resolve the breach. In these situations, equitable remedies may be awarded as a means to mend the breach by requiring the parties to take steps toward correcting the breach.
Equitable remedies include:
Equitable remedies may also be used in situations where the parties want to make the situation work, and the court wants to find a way to help the agreement go forward. It could mean that the contract needs to be complete re-written or that the parties need a chance to completely re-approach the situation. Either way, equitable remedies for a breach of contract gives parties to contracts a wide variety of options in case something goes wrong.
In its broadest sense, equity refers to fairness. In order to address fairness in court, defenses to equitable remedies may include:
Importantly, the person seeking equitable remedy should have a clean record, and must not have violated the law. Of all the equitable defenses, the two most common are unclean hands and laches.
If the party who violated the contract has a valid defense for doing so, then equitable relief is not available. Equitable remedies will only be available when legal remedies such as monetary damages cannot resolve the breach. Because equitable relief does not provide monetary compensation, it usually comes in the form of the parties taking certain actions which will remedy the breach.
The defenses used for something like the performance of a contract may differ from the defenses used for contract rescission. As such, consult an experienced contracts attorney for guidance on your case.
If you have questions regarding breach of contract equitable defenses, you should contact a local business attorney with experience in contracts. Your lawyer will go over all of your options relating to your case, and will advise you on the best course of action in proceeding further. If necessary, your lawyer will also represent your best interests in court.
Last Modified: 08-12-2018 11:22 PM PDTLaw Library Disclaimer
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