Business Law 18.0

Question 1

golden contract rule

Answer 1

to put the non breaching party in the same position they would have been in if the contract had not been performed

Question 2

3 ways we try to make the non breaching party “whole”

Answer 2

1. compensatory damages
2. equitable remedies (what is fair, not always $)
3. restitution

Question 3

restitution

Answer 3

giving back or restoring something that belongs to the non-breaching party

Question 4

compensatory damages

Answer 4

extra damages awarded

Question 5

for compensation damages to be recoverable for a breach of contract they must be:

Answer 5

1. foreseeable
2. reasonably calculable
3. unavoidable

Question 6

foreseeable

Answer 6

the types of losses or damages incurred must be something that could have been foreseen if the contract was breached

Question 7

reasonably calculable

Answer 7

you cant just make up numbers

Question 8

unavoidable

Answer 8

the non breaching party must try to avoid the damages or mitigate (minimize) them as much ass possible

Question 9

how to calculate compensatory damages

Answer 9

loss of value
+ incidental damages
+ consequential damages
- loss / cost avoided
= compensatory damages

Question 10

reliance damages

Answer 10

sometimes its impossible or too speculative to calculate compensatory damages with the required degree of reasonable certainty

Question 11

what do we do in cases where compensatory damages cant really be calculated (reliance damages)

Answer 11

we allow the non breaching party to recover “reliance damages”