Types of Damages for Breach of Contract in Virginia

When a breach of contract happens in Virginia, different types of damages may be awarded. What is awarded can vary depending on the type of contract and the facts of the case.

The person who files a claim for breach of contract is called the plaintiff. The plaintiff must show all of the elements for a breach of contract, including showing that there was a valid contract.

The definition of what makes a legal contract is different in each state, which is why it is essential to get more information from a Virginia lawyer. As a general rule, however, a contract is typically a written document that has the information about the agreement made between the parties.

Contracts create mutual obligations between the individuals who sign it as well as give them certain legal rights. Although a contract is typically written, it can be oral. Contracts are usually written because oral contracts are harder to enforce.

When a breach of contract happens, a plaintiff will often ask for compensatory damages. These monetary damages give a non-breaching party compensation for the losses they suffered.

Compensatory damages can include both general and specific damages. General damages are used to compensate plaintiffs for losses directly related to the contract.

Specific damages, on the other hand, compensate the plaintiff for losses not directly related to the breach, for example, if they suffered damage to their reputation because the contract was breached.

There are also other types of damages that may be awarded in Virginia breach of contract claims, such as:

• Remedies in Equity: A remedy in equity is a remedy that does not involve compensation.
  • Specific performance, or requiring a party to perform their obligation under the contract, is one common example.
• Nominal Damages: Nominal damages are only symbolic, and may be as low as one dollar. These are awarded when the breach did not cause any true harm.
  • Nominal damages are a formal acknowledgment of the wrong suffered by the plaintiff and may also be used as a basis to request punitive damages.
• Quantum Meruit: Quantum Meruit means, “what one has earned,” in Latin. This category of damages compensates the plaintiff for the value of services performed by one of the parties for another party.
• Restitutional Damages: Restitution places the non-breaching party back in the position they were prior to the breach, such as refunding any deposit money.

What Is a Breach of Contract in Virginia?

In Virginia, a breach of contract arises when one of the parties does not fulfill their obligations. Contracts will usually explain what the parties are required to do.

When someone does not follow the terms of the contract they signed, they are in breach of that contract. When this happens, the non-breaching party can file a civil claim against the party who breached the contract and ask for compensation for their losses.

How Do Contract Breaches Happen in Virginia?

Breach of contract can happen in many different ways in Virginia. There can be partial breaches and complete breaches. Additionally, the breach may be a minor breach or a substantial breach.

It is important to determine the type of breach that occurred, as it often determines the damages for breach of contract that will be available. Contract breaches can fall into three general categories, including:

• Anticipatory Breaches: These may also be called anticipatory repudiation. They arise when one party tells the other they cannot or will not be able to fulfill their contract obligations.
• Minor Breaches: These happen when small contract details are not accurate or complete, for example, typographical errors. When these types of breaches happen, the contract can still be fulfilled.
• Material or Fundamental Breaches: These breaches are the most common that result in lawsuits. When these happen, the other party to the contract is not able to fulfill their obligations.

It is important to note that there are also other ways in which Virginia contracts can be violated, such as fraud, mistake of fact in the terms, or being unconscionable.

Statute of Limitations for Breach of Contract in Virginia

In Virginia, the statute of limitations for breach of contract that applies will vary depending on the type of contract. If the contract was written, the statute of limitations is five years.

If the contract was oral, the statute of limitations is three years. The statute of limitations for a contract for the sale of goods is four years.

For help determining what statute of limitations applies to a Virginia contract, it is essential to schedule a Virginia lawyer consultation.

Liquidated Damages Requirements in Virginia

A liquidated damages clause may be included in a Virginia contract when it might be difficult to predict the actual damages amount when the contract is signed. It will be enforceable when it is a reasonable estimate of actual or anticipated harm caused by a breach, taking into consideration the difficulty of proving loss at the time the contract is signed.

The clause cannot be grossly excessive or be used as a penalty compared to the actual damages.

Punitive and Emotional Distress Damages Rules in Virginia

Punitive damages may be awarded in Virginia to punish a defendant as well as to deter future similar misconduct. These damages are capped at $350,000. To obtain punitive damages, the plaintiff must show reckless, wanton, or willful conduct.

Recovering punitive damages is usually only possible in Virginia when a physical injury also occurs. There is an exception for Intentional Infliction of Emotional Distress (IIED).

An IIED claim requires the plaintiff to show that the defendant’s conduct was outrageous, extreme, and caused them severe distress.

Are There Other Contract Remedies Available in Virginia?

Yes, in Virginia, there may be other types of contract remedies that are available, which may include:

• Termination of Contract: Contracts often have clauses that provide the reasons that contracts can be terminated as well as what compensation can be provided.
• Injunctions: An injunction is an order from a court that makes a party stop doing something or do something specific
• Rescission of Contract: Rescission means the contract is voided by the court and is legally unenforceable.

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

There are several challenges you may face with your Virginia breach of contract claim, including determining the type of contract, the statute of limitations, and the damages that may be available to you. You will typically need help from a Virginia breach of contract lawyer with these.

You can use LegalMatch’s online attorney matching services for free to find a licensed and prescreened member Virginia contract lawyer near you in as little as 15 minutes. Once you complete your submission, attorneys in your area who can help will reach out to you.

The responses you get will have information about their education, background, fees, and client reviews. You may even be able to schedule a free consultation to get an idea about your case and potential resolutions.

You should always have an attorney review any contract before you sign it to help you avoid future issues and disputes. You are not required to hire any of the lawyers who respond or even any who you have a consultation with, so take advantage of LegalMatch’s free services today.