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If a condition of your contract has been breached, you may be able to terminate the contract by ‘repudiation’ and claim compensation for the loss you have suffered. If the breach of contract is a breach of a warranty, compensation is by damages alone. Damages are used to put the claimant back in the position they would have been if the terms of the contract had been met as agreed. You will be entitled to ‘liquidated damages’ if the contract specifies that an amount should be paid if the one side breaks the contract. These clauses are often found in manufacturing and building contracts, which often include penalty clauses for late completion of work.
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