Seeking Damages for Breach of Contract in Wisconsin

Parties enter into contracts with the expectation that all terms will be fulfilled. However, unforeseen circumstances can lead to breaches of contract. Understanding the legal remedies available in Wisconsin is crucial for protecting your rights. At Halling & Cayo, S.C. we have decades of experience assisting individuals and businesses in navigating complex contract disputes.

Contract Law Basics

Before discussing remedies, it is essential to understand the basics of contract law. A contract must be binding to seek any remedy for a breach. The five essential elements of a binding contract are:

1. Offer: One party proposes to do something in exchange for something else.
2. Acceptance: The party receiving the offer understands and accepts it (e.g., the seller signs the contract submitted by the buyer).
3. Consideration: Both parties have something at stake and stand to gain or lose from the contract’s performance.
4. Capacity: Both parties must have the legal capacity to enter into the contract (e.g., contracts with minors are generally voidable).
5. Legality: The contract’s subject matter must be legal and in the proper form (e.g., land contracts typically need to be in writing and signed by the party against whom enforcement is sought).

If any of these elements are missing, the contract may not be valid. An experienced business litigation attorney can review your contract to determine whether it is enforceable.

Types of Breaches of Contract

Not all breaches are equal, and not all merit substantial remedies. Here are the different types of breaches:

1. Minor Breach: A minor error or inconsistency that does not significantly impact the contract’s performance. These can often be corrected without formal remedies.
2. Material Breach: A significant failure to perform as promised, affecting the contract’s core terms (e.g., a buyer refusing to purchase the house or a seller failing to deliver goods). Material breaches often lead to disputes and/or litigation.
3. Anticipatory Breach: When a party indicates in advance that they will not fulfill their contractual obligations.

Remedies for Breach of Contract

The contract and applicable law determine the scope of remedies for a breach. Here are some common remedies for a material breach of contract in Wisconsin:

1. Liquidated Damages: A specific amount of money stated in the contract or readily quantifiable (e.g., keeping the earnest money deposit in a real estate contract). Liquidated damages are not punitive but represent an agreed-upon measure of damages that is difficult to calculate ahead of time.
2. Specific Performance: In limited cases, courts may require parties to perform the contract as originally agreed. Specific performance is rare and typically used when monetary damages are insufficient.
3. Compensatory Damages: These aim to compensate the non-breaching party for losses incurred due to the breach, putting them in a position as close as possible to what they would have been if the contract had been performed (e.g., reimbursement for inspection or repair costs).

The experienced attorneys at Halling & Cayo, S.C. have helped people and businesses like you to enforce a contract and to obtain remedies for a party’s failure to perform. Please contact an attorney today for a free consultation.