Remedies and Damages for Breach of Contract in Ontario

In Ontario contract litigation, the key question is often not just “who breached?” but what remedy is realistic. Many claims succeed on liability but underperform on value due to weak damages proof or mitigation issues.

Common remedies

• Damages (money) — the most common remedy
• Specific performance — an order to perform the contract (narrower cases)
• Injunctions — urgent relief to stop conduct or preserve the status quo
• Restitution-based remedies in appropriate cases (fact-specific)

Types of damages (practical overview)

• Out-of-pocket / direct losses: invoices, repair/completion costs, replacement costs.
• Expectation damages: the value you would have received if the contract was performed.
• Consequential losses: additional losses flowing from the breach (often contested and evidence-heavy).
• Liquidated damages: contractual pre-set amounts (enforceability may be disputed).

Mitigation: why damages get reduced

Even if breach is clear, damages can be reduced if a party did not take reasonable steps to limit losses. Mitigation is commonly disputed in real estate, construction, and ongoing business relationships.

How we build damages evidence

1. Create a damages summary (each line item tied to a document).
2. Organize proof: invoices, receipts, quotes, ledgers, statements.
3. Link losses to events via a timeline (causation).
4. Preserve mitigation steps (quotes, outreach, re-listing records).

Read our full Ontario Remedies & Damages Guide.

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FAQ

What are the main remedies for breach of contract in Ontario?

Damages (money) are most common. In narrower circumstances, parties may seek injunctions or specific performance depending on the facts and the contract.

What damages can be claimed for breach of contract?

It depends on the contract, the breach, causation, and what losses can be proven with documents. Strong damages proof often drives outcomes.

What is mitigation and why does it matter?

Mitigation means taking reasonable steps to reduce losses after a breach. Damages can be reduced if losses could have been reasonably avoided.

Are liquidated damages clauses enforceable in Ontario?

Sometimes. Disputes often turn on whether the clause is a genuine pre-estimate of loss or operates like a penalty. The wording and context matter.

Can I get punitive damages for breach of contract?

Punitive damages are uncommon in contract disputes and are generally reserved for exceptional circumstances. Most cases focus on compensatory damages and to put the party where they would have otherwise been but for the breach of contract.