Types of Damages for Breach of Contract in Ohio

When a party has a successful breach of contract claim against the party that breached the contract, they may be able to recover damages or be awarded a remedy in accordance with Ohio contract laws. First, however, the plaintiff, or party who filed the claim, has to prove all of the required elements of breach of contract, which includes that a valid contract existed.

The exact definition of a valid legal contract differs by state, so it is important to consult with an Ohio lawyer for more information. Generally, however, contracts are documents that record agreements between two private parties that creates mutual obligations as well as provides certain legal rights.

A contract may be in oral form or in written form. Oral contracts, however, are typically more difficult to enforce than written contracts. Most contracts are required to be in writing to be considered valid.

What Is a Breach of Contract?

A breach of contract arises when a party to a valid contract does not fulfill their obligations or duties under the terms of the agreement. A contract will typically outline what the parties have to do and how they have to do it to hold up their end of the contract.

If a party does not follow those terms, they are considered to be in breach of the contract. If this occurs, the party that did not breach the contract may be able to file a civil lawsuit against the breaching party for the harm they suffered because of the breach.

How Can Contract Breaches Happen?

A breach of contract may happen in different ways, which may include a partial breach or complete breach. Courts will typically determine whether the breach was minor or substantial. This helps determine what damages for breach of contract may be available.

Generally, a party may typically be liable for a breach of contract in one of three ways:

• Anticipatory Breach: This type of breach is also called anticipatory repudiation.
  • This type of breach arises when a breaching party informs the non-breaching party that they cannot or will not fulfill the terms of the contract.
  • Once the non-breaching party is notified, they can file a claim for breach of contract.
• Minor Breach: This type of breach occurs when one party fails to perform a small detail in the agreement. In these cases, the entire contract is not violated and may still be substantially performed.
  • An example of a minor breach may be a technical error, for example, an incorrect price, date, or typographical error.
• Material or Fundamental Breach: A material or fundamental breach is the most commonly used basis for a breach of contract claim. With these types of breaches, the breach is so substantial that it renders performance by the other party impossible.

In addition to these main types of contract breaches, a contract may be violated in other ways, such as if the contract:

• Was fraudulent
• Was illegally formed
• Was unconscionable
• Included a mistake of fact in the contract terms

Damages

In a breach of contract claim, compensatory damages are the most common type of damages that are awarded. These damages are meant to compensate the non-breaching party for the financial losses they suffered as a result of the breach.

This term may include general and specific damages. General damages are intended to cover the losses directly related to the contract subject matter.

Specific damages are intended to compensate a non-breaching party for losses that did not directly result from the breach. This can include damages to an entity’s reputation.

There are also other categories of damages that may be available in a breach of contract claim, such as:

• Restitutional Damages: Restitutional damages, or damages based on restitution, are meant to restore a non-breaching party to the position they were in prior to the breach.
  • This can include refunding the amount that was put forward in the contract.
• Nominal Damages: Nominal damages are a symbolic form of damages when there was not any true harm that resulted from the breach of the contract.
  • This category of damages is based on contract principles and may even be as low as one dollar.
• Quantum Meruit: This is a Latin phrase that means, “what one has earned.”
  • This category of damages is meant to recover the reasonable value of services performed by one party for another party.
• Remedies in Equity: This category of remedies differs from legal remedies because they are not monetary in nature.

Statute of Limitations for Breach of Contract in Ohio

In the State of Ohio, the statute of limitations for a breach of contract is six years for a written contract and four years for an oral contract. To find out more about statutes of limitations for different contracts, it is important to schedule an Ohio lawyer consultation.

Liquidated Damages Requirements in Ohio

Liquidated damages are a specific amount of damages that are intended to reflect the estimate of the actual damages that a party in Ohio should receive if a breach occurs. It is common for contracts to include a liquidated damages clause when the subject matter of the contract may make it difficult to predict the amount of actual damages.

Punitive and Emotional Distress Damages Rules in Ohio

Punitive damages are damages that may be available when there is an incentive to deter and punish an offending party from engaging in similar offensive or outrageous actions in the future. They are also used to make a public example to deter others from engaging in similar conduct in Ohio.

In the State of Ohio, the amount of punitive damages is capped at $350,000 or two times the amount of the compensatory damages awarded, unless the plaintiff can show that the defendant acted with fraud or malice.

Damages for emotional distress are awarded in Ohio to compensate for the pain and suffering of the plaintiff. Recovering these types of damages requires the plaintiff to show the harm was severe, typically proven by medical records or other documentation.

Are There Other Contract Remedies Available in Ohio?

There may also be other types of contract remedies available in Ohio, including remedies in equity, such as:

• Rescission of Contract: This arises when a contract is annulled or voided by a court, which renders the contract legally unenforceable.
• Termination of Contract: This is a specific clause in the contract that provides the reasons the contract may be terminated as well as the compensation that will be provided to the non-breaching party.
• Injunctions: Injunctions require a party to refrain from doing something or to do something.

It is important to consult with an Ohio attorney, as there may also be other remedies in equity available.

Do I Need a Lawyer for Help With Breach of Contract Damages in Ohio?

If you have any legal issues related to a breach of contract in Ohio, it is essential to consult with an Ohio breach of contract lawyer. Your breach of contract attorney can help you understand the specific laws in Ohio and the categories of damages that may be available for your breach of contract case.

Use LegalMatch’s free attorney matching services to find a contract attorney in your area of Ohio who can answer your breach of contract questions. It will only take you around 15 minutes to complete the online submission process and you can get started working towards compensation for your losses.