Home Work 5/29/2014 - Essay Example

In such a case, the result is the insurer taking up equitable remedies. Many types of equitable remedies exist in the contemporary business environment. One of the types of these remedies is specific performance. Usually this court order requires the breaching party to pay for its blunders by delivering the required amount of goods that it had purchased previously and this is effective for it ensures that the company generally pays for the equitable amount of money that it owes the other company (Sevelka, 2004).

Moreover, or rather alternatively, it should pay for the amount of services that it had received from the non breaching company. Another remedy is the contract rescission. This is a subtle way for the non-breaching company and is rarely seen. This is because it requires the non-breaching company to forgive the guilty party where it cancels all the mistakes that the partner had committed and the consequence of this is having the two back in business effectively. The contract that the partner had breached is thus canceled and there is the formulation of another contract.

Contract reformation is another type of equitable remedy. This type of contract is often seen in companies that have been in business for a long time and have achieved a lot such that dismantling it would lead both companies into a magnitude of losses. Through this remedy, the contract is rewritten where both the parties state the clear intentions of each such as they do not have to separate but there is the assurance of discipline on both of the parties. This contract is the most effective if the breaching company did not commit a major wrong.

Another option taken is that of creating insurance plans for individual members. Individual insurance is less preferred by people due to the huge costs it comes with when it comes to seeking remedies after dissolution of