Types of Performance
Complete performance: all terms fully satisfied. Substantial performance: minor deviations — the non-breaching party must pay but can deduct damages for the deficiency. Material breach: significant failure — the non-breaching party is discharged from their obligations.
Remedies for Breach
Compensatory damages: put the injured party in the position they would have been in. Consequential damages: foreseeable indirect losses. Liquidated damages: pre-agreed amount in the contract. Specific performance: court orders the breaching party to perform (used for unique goods or land).
Mitigation
The non-breaching party has a duty to mitigate (minimize) damages. You cannot sit back and let losses accumulate when you could reasonably take steps to reduce them.