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Remedies: Definition, Example and Related Terms

What is a Remedies ?

In the world of business, things don't always go as planned. Sometimes, one party might not do what they agreed to in a contract. If this happens, the other party can use what we call 'Remedies' to try and fix the problem. Remedies are actions that a party can take if the other party breaks a contract. It's like a solution to a problem. Remedies can help make things fair again, or at least as close to fair as possible. For example, if a company agrees to deliver 100 computers to another company but fails to do so, remedies could include making the first company pay money to the second, or forcing them to deliver the computers as promised.

There are many different types of remedies. Some of these include damages, which is money paid to make up for a loss; specific performance, which makes the party do what they promised in the contract; and cancellation, which allows one party to say the contract is over because the other party broke it. Choosing the right remedy depends on the situation and what the contract says.

In commercial contracts, remedies are very important. They help businesses protect themselves if things go wrong. They can make sure that a business gets what it was promised, or at least something to make up for it. However, remedies can also be complicated, and it''s important to understand them fully before agreeing to a contract. That''s why contract managers often spend a lot of time looking at the remedies section of a contract, to make sure it''s fair and protects the business.'


  • Scenario Description
    A company, 'Company A', enters into a contract with another company, 'Company B', for the delivery of 1000 units of a specific product. The contract states that the delivery should be done within 30 days. However, Company B fails to deliver the products within the agreed time. In this case, Company A can seek remedies for breach of contract. The remedy could be damages, where Company B would have to pay Company A a certain amount of money to make up for the delay; or specific performance, where Company B would be legally forced to deliver the 1000 units as promised.
    A software development company, 'Company X', signs a contract with a client, 'Company Y', to develop a specific software. The contract has a clause stating that if the software is not delivered on time, Company Y can cancel the contract and get a refund. If Company X fails to deliver the software on time, Company Y can use the remedy of cancellation. This means that Company Y can choose to end the contract and get their money back, because Company X failed to do what they promised.