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When a contract is broken, the harmed party seeks legal remedies.

These often involve money, but


sometimes other actions. In the Anglo-American legal system, the main remedy is compensating the
injured party for the losses they suffered due to the contract breach. This is usually through money
damages, like expectation damages for the expected benefits of the contract. Some damages are
recoverable regardless of foreseeability, while others depend on it.

There are different types of damages, like general damages for direct and natural losses, and special
or consequential damages for losses tied to specific circumstances. If expectation damages can't be
proven, the non-breaching party may seek reliance damages, covering expenses incurred in
reasonable reliance on the contract.

Restitution damages force the breaching party to give up any money benefits gained under the
breached contract. Parties can also agree on fixed sums or formulas for damages in advance
(liquidated damages). Punitive damages are rare but can be awarded to punish reprehensible
conduct.

In cases where money isn't enough (e.g., real estate deals), the court might order specific
performance, compelling the breaching party to fulfill the contract. Other remedies include
canceling the contract (rescission) or utilizing specific rights under legislation, like rejecting faulty
goods.

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