In Virginia, breach of contract cases are some of the most frequent disputes in civil court. From unpaid invoices to failed business deals, a broken contract can cause real financial harm and uncertainty for both individuals and companies.
However, when a promise is broken, what can you actually recover? Not every breach guarantees full compensation. The type and amount of recovery depend on the contract terms, the evidence, and the extent of the loss.
Let’s discuss what damages and remedies are available to help you recover after a breach of contract in Virginia and how a breach of contract lawyer can help you pursue fair compensation through the courts.
What Constitutes a Breach of Contract in Virginia
A breach occurs when one party fails to perform as promised under a valid contract. Virginia courts require proof of three basic elements:
- A legally binding agreement exists.
- The plaintiff fulfilled their contractual duties or was ready to perform.
- The defendant failed to perform, causing financial harm.
A breach may be material or minor. A material breach strikes at the core of the agreement and excuses the non-breaching party from further performance. A minor breach, by contrast, does not destroy the entire contract but may still lead to compensation for specific losses.
What You Can Recover After a Contract Breach
When a contract is broken, the first question most people ask is simple: What can I recover after a breach of contract?
In Virginia, courts aim to place the injured party in the same position they would have been in if the agreement had been honored. The law allows several remedies depending on the type and seriousness of the breach.
Here’s an overview of what you may recover after a breach of contract.
1. Compensatory Damages
Compensatory damages are the most common recovery in contract cases. They cover direct losses caused by the other party’s failure to perform.
For example, if a supplier fails to deliver goods and you must buy replacements at a higher cost, the difference can be recovered as compensatory damages.
To recover after a breach of contract in Virginia, you must prove the actual amount of loss with reasonable certainty. Courts do not allow speculative or estimated claims. Documentation, invoices, and correspondence often serve as solid proof of financial harm.
2. Consequential Damages
Consequential damages, also known as special damages, compensate for additional losses that arise as a foreseeable result of the breach.
For instance, if a contractor fails to complete a job on time and your business loses revenue because of the delay, you may recover those lost profits.
However, Virginia courts apply this remedy carefully. To recover after a breach of contract under this category, the loss must have been foreseeable and directly linked to the breach when the contract was made. A business law consultation with a professional breach of contract attorney helps present evidence showing that the damages were predictable and reasonable.
3. Liquidated Damages
Some contracts specify in advance what can be recovered if one party breaches. These are called liquidated damages.
Such clauses help both parties avoid disputes about uncertain losses.
Virginia courts will enforce liquidated damages only if the amount is reasonable and not meant to punish the breaching party. If the amount appears excessive compared to the actual loss, the court may treat it as a penalty and refuse enforcement.
For businesses, clear and fair contract language ensures that you can confidently recover after a breach of contract without unnecessary litigation.
4. Nominal Damages
Sometimes, a breach occurs, but no real financial harm can be proven. In these cases, courts may award nominal damages, usually a small amount, such as one dollar, to recognize that the contract was violated.
While this recovery is symbolic, it serves an important legal purpose. It confirms that the plaintiff’s contractual rights were violated and may help preserve the right to recover attorney’s fees or court costs.
5. Specific Performance
Money does not always make things right. In some cases, the only fair outcome is forcing the breaching party to perform as promised.
Specific performance is an equitable remedy that orders the defaulting party to complete their contractual duties.
This remedy is most common in real estate contracts, where each property is considered unique, or in cases involving rare goods.
Virginia courts will only grant this remedy if monetary compensation would not be enough to make the injured party whole.
For those seeking to recover after a breach of contract involving real estate or unique assets, specific performance can be a powerful legal option.
6. Rescission and Restitution
In some cases, the best way to recover after a breach of contract is to cancel the agreement entirely. Rescission allows the non-breaching party to withdraw from the contract and restore both sides to their original positions before it was made.
Restitution goes hand in hand with rescission. It requires the breaching party to return any money or benefits they received.
For example, if you paid for goods that were never delivered, you can recover your payment under restitution.
This remedy is often used when the breach involves fraud, misrepresentation, or a complete failure of performance. It ensures that no party profits unfairly from broken promises.
Procedural Considerations in Virginia
Virginia’s contract law requires careful attention to procedure and timing. Missing a deadline or filing in the wrong court can affect the outcome of a case.
1. Statute of Limitations
Under Virginia Code § 8.01-246, the time limit for filing a breach of contract claim depends on the contract type:
- Written contracts: 5 years from the date of breach
- Oral contracts: 3 years from the date of breach
Once this period expires, the injured party loses the right to bring the claim.
2. Evidence and Documentation
Courts rely heavily on written contracts, correspondence, invoices, and witness statements to determine liability. Detailed records strengthen a claim and make damages easier to prove.
3. Duty to Mitigate Damages
The non-breaching party has a legal duty to reduce or mitigate its losses. For example, if a service provider cancels a contract, the client must take reasonable steps to find a replacement instead of allowing damages to accumulate.
Failing to mitigate may reduce the compensation awarded.
The Role of a Breach of Contract Lawyer
Handling a breach claim without legal guidance can be difficult, especially when calculating losses or interpreting contract language. A breach of contract lawyer can help in several ways:
- Reviewing contract terms to identify enforceable rights.
- Assessing the available remedies for breach of contract under Virginia law.
- Gathering evidence and preparing legal filings.
- Negotiating settlements or representing clients in court.
A business law consultation with a qualified breach of contract attorney can clarify the best course of action based on the type of breach, available evidence, and potential remedies.
Experienced Breach of Contract Attorney from Jabaly Law
Jabaly Law understands that a broken contract can disrupt business operations and cause serious financial loss. Founded by Peter Jabaly, our law firm focuses on business litigation and contract disputes throughout Virginia, such as Arlington, McLean, Tysons, Vienna, Alexandria, Fairfax, etc. The breach of contract lawyer analyzes contracts, evaluates financial impact, and pursues the most effective breach of contract remedies under state law.
If your business is facing a contract dispute or failed agreement, contact Jabaly Law for a detailed business law consultation.
