What Does “Remedy” Mean in a Contract?
The means of enforcing a right or compensating for a wrong - what you can get if the other party breaches.
Detailed Explanation
Remedies are what you can obtain when rights are violated. Common contract remedies include damages (money), specific performance (forcing the breach party to perform), and rescission (canceling the contract).
Contracts often limit remedies - caps on damages, exclusion of certain types of damages, or specifying that termination is the sole remedy for certain breaches.
Example in a Contract
“Except for breaches of confidentiality, the remedies set forth in this Agreement are exclusive. In no event shall either party be entitled to recover punitive, exemplary, or consequential damages.”
Why It Matters
Remedy provisions determine what you can actually recover if something goes wrong. Extensive liability limitations might leave you with minimal recourse even for serious breaches. Understand your actual remedies, not just your theoretical rights.
Related Terms
Have a Clause with “Remedy”?
Paste your contract clause below for instant AI analysis. Get risk assessment, plain English explanation, and suggested improvements.