Q: Good morning. What is the penalty for breach of contract?
Our group sold a home health agency to another group. Our contract stated the price and monthly payment schedules. The other group has paid us a downpayment but has since missed monthly payments for over a year now. The other group is insisting that we lower the price from what was agreed upon.
We are contemplating suing for breach of contract. Can you please provide some legal advice on how to proceed?
Thank you.
A: In Illinois there is no penalty for breaching a contract. In fact, Illinois law expressly allows a party to breach a contract. However, once a party breaches, it is obligated to make the other side whole. Meaning that the benefit of the contract must still be given to the non-breaching party. Assuming you have a written agreement, then the breaching party - in this case the buyer - must make you whole by providing the purchase price. If your agreement provides for interest on overdue payments or for recovery of attorney fees, then those damages may also be recovered.
Tim Akpinar agrees with this answer
A: The penalty is the amounts to be paid under the contract. You might also be entitled to interest or attorney fees, depending on the written agreement. Consult with experienced civil litigation attorneys in the state where this occurred.
Tim Akpinar agrees with this answer
A: Instead of penalties, contract matters general involve monetary damages that tend to be compensatory. Good luck
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