Certain remedies: Overview, definition, and example
What are certain remedies?
Certain remedies refer to specific legal actions or solutions available to a party involved in a contract or dispute to resolve a breach, injury, or issue. These remedies are typically outlined in a contract or governed by law and can include things like compensation (damages), specific performance (forcing a party to fulfill their obligations), or contract termination. "Certain remedies" are often listed in the context of what a party can seek when there’s a failure to meet agreed terms, and they can vary depending on the nature of the contract or the law.
For example, if a supplier fails to deliver goods on time, the contract may specify certain remedies, such as the right to cancel the order or receive compensation for the delay.
Why are certain remedies important?
Certain remedies are important because they provide businesses with legal solutions to problems arising from breaches of contract or other disputes. By specifying remedies in contracts, businesses can ensure that there is a clear path to resolving issues without needing to resort to lengthy litigation. These remedies provide a sense of security, knowing that there are predefined actions to take if an agreement is not upheld. They also help businesses manage risks and enforce their rights, which is essential for maintaining smooth operations.
For SMBs, understanding the remedies available in contracts or legal agreements helps protect against potential losses and ensures that businesses can take appropriate steps to resolve conflicts when they arise.
Understanding certain remedies through an example
Imagine your small business enters into a contract with a vendor to supply materials for a construction project. If the vendor fails to deliver the materials on time, your business could face project delays and financial losses. The contract specifies certain remedies, such as the right to receive liquidated damages (a fixed amount per day of delay) or to terminate the contract and seek a replacement supplier. These remedies give your business the tools to handle the situation effectively and ensure that your rights are upheld.
In another example, if a customer breaches a service agreement by not paying on time, the contract may specify certain remedies such as charging interest on the overdue amount or suspending services until payment is received.
An example of certain remedies in action
Here’s how certain remedies might be referenced in a business contract:
“In the event of a breach by the supplier, the buyer shall have the right to seek certain remedies, including but not limited to liquidated damages for delay, the ability to terminate the contract, or to demand specific performance of the contract terms.”
Conclusion
Certain remedies are predefined legal solutions available to resolve disputes or breaches in contracts. For SMBs, having clear remedies outlined in agreements is essential for protecting business interests, ensuring timely resolution of issues, and maintaining operational efficiency. By understanding and specifying certain remedies, businesses can effectively address problems without unnecessary conflict and ensure that their rights are enforced.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.