Describe the three (3) most important remedies available for breach of contract.
There are five types of remedies for breach of contract. They include money damages, restitution, rescission, reformation and specific performance. Money damages refer to the monetary payments which a breaching party has to make for violating the terms of contract. There are different types of money damages such as compensatory damages; This is meant to cover the loss incurred by the non-breaching party because of the breach of contract and punitive damages: Unlike compensatory damages which are meant to cover the actual loss, punitive damages are awarded to punish the wrongdoer for egregious behavior and to deter others from committing similar acts. Restitution is a remedy which is used to restore the injured party to the position occupied before the contract while rescission occurs when the contractual duties of both parties may be terminated by the court. Reformation is when a court reforms or changes a contract to correct any inequities. Under specific performance, the breaching party has to perform their duties as specified by the contract and it is used when money damages are not adequate to compensate the plaintiff. Specific performance is used in cases which involve giving a piece of land or a valuable item to the plaintiff.