What is the purpose of remedies for breach of contract?

The purpose of remedies for breach of contract is fundamentally to restore the injured party to the position they would have occupied had the contract been properly fulfilled. This principle is rooted in the idea of compensatory justice, which seeks to make up for losses incurred due to the other party's failure to adhere to the agreed terms.

When a breach occurs, the non-breaching party suffers damages that can take various forms, including lost profits, costs incurred, or other consequential losses directly linked to the breach. The remedies available, such as monetary damages, specific performance, or rescission, are aimed at compensating for these losses and ensuring that the non-breaching party does not suffer unduly because of another's failure to perform.

This approach emphasizes the restoration of the aggrieved party, rather than punishing the party who breached the contract or forcing compliance. Instead, it acknowledges that the primary goal is to achieve a fair outcome for the party that relied on the contract.