Chapter 19 Flashcards
A _____ relieves the innocent party when the other breached the contract
Remedy
The most common type of remedy is…
Monetary
______ are meant to compensate the innocent party for their loss on the bargain
Damages
Most parties choose to settle their lawsuits for remedies prior to trial because…
- Litigation is expensive + time consuming
- Judgements are difficult to enforce if guilty party isn’t able to pay damages awarded
The broad categories of damages are:
- Compensatory
- Consequential
- Punitive
- Nominal
Compensatory damages
Compensates injured party for actual losses
Standard measure equals…
Promise performance minus actual/received performance
Incidental damages go toward…
Directly incurred expenses due to a breach of contract
Additional expenses/fees
Consequential damages
Compensates for indirect, not immediate losses
Lost profits
Punitive Damages
Punishes the guilty party
Nominal damages are small awards granted if…
- No actual damage was suffered
- The plaintiff fails to prove such loss
Mitigation of damages requires the plaintiff to…
Try to minimize the damages caused by the defendant
Liquidated damages
The amount both parties believe to be a reasonable estimation of damages if a breach happens
Penalty
Punishment for breach of contract
Specific performance is granted only when…
- Money won’t cut it
- The subject matter of the contract is unique
