What rights do parties to a contract have if the agreement is breached?

Parties to a contract have specific rights when the contract is breached, and the correct understanding is that they can seek damages, specific performance, or rescission. This aligns with the fundamental principles of contract law, which recognize that a breach gives rise to a variety of remedies to protect the non-breaching party's interests.

When a breach occurs, the non-breaching party typically has the right to claim damages, which are intended to compensate for any losses incurred due to the breach. This includes both direct damages related to the non-performance and consequential damages that arise from the breach, provided they were foreseeable.

In addition to claiming damages, parties may also seek specific performance. This remedy compels the breaching party to fulfill their contractual obligations, particularly when monetary damages are insufficient to make the non-breaching party whole, such as in contracts involving unique goods or real estate.

Rescission is another remedy available, which allows the non-breaching party to unwind the contract, effectively treating it as though it never existed. This remedy may be sought when the breach is significant enough to undermine the contract's entire purpose.

The other options do not accurately reflect the legal rights possessed by parties in the event of a breach. The notion that a party