chapter 13 exam 3 Flashcards
the relief provided to an innocent party when the other party has breached the contract
remedy
there are four broad categories of damages:
- compensatory
- consequential
- punitive
- Nominal
damages that compensate the nonbreaching party for the loss of the bargain are known as
compensatory damages
all costs resulting from a breach of contract, including all reasonable expenses incurred because of the breach
incidental damages
in contract for sales of goods, the usual measure of compensatory damages is the difference between
contract price and market price
when a buyer breaches and the seller has not yet produced the goods, compensatory damages equal the sellers
lost profits on the sale
if the owner breaches before construction has begun
profits (contract price less cost of materials and labor)
owner breaches during construction then
profits, plus costs incurred up to time of breach
owner breaches after construction is completed
the full price, plus interest
contractor before construction has begun
the cost in excess of contract price to complete work
contractor breaches before construction is completed
generally all the costs incurred by owner to complete
foreseeable damages that result from a party’s breach of contract are called
consequential damages or special damages
small monetary award granted to a plaintiff when no actual damage was suffered
nominal damages
The requirement that a plaintiff do whatever is reasonable to minimize the damages caused by the defendant
mitigation of damages
a person whose employment has been wrongfully terminated has a duty to mitigate damages incurred because of the employers breach of the employment contract
employment contracts
if an acceptable tenant becomes available, the landlord is required to lease the premises to this tenant to mitigate the damages recoverable from the former tenant
rental agreements
provision in a contract specifies that a certain dollar amount is to be paid in the event of a future default or breach of contract
liquidated damages provision in a contract
an amount that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach
liquidated damages
a certain amount to be paid in the event of a default or breach of contract and is designed to penalize the breaching party
a penalty
to determine whether a particular provision is dor liquidated damages or a penalty, the court must answer two questions: at the time the contract was formed, was it apparent that damages would be difficult to estimate in the event of a breach? was the amount set as damages a reasonable estimate and not exessive?
if the answer to both are yes the provison will be enforced, if either is NO then provison will not be enforced
an action to undo or cancel a contract- to return nonbreaching parties to the positions that they occupied prior to the transcation
rescission
to rescind(cancel or take back) a contract, both parties generally must make _____ to each other by returning goods, property, or funds previously conveyed
restitution
equitable remedy under which a person is restored to their original position prior to loss or injury, or placed in the position they wouldve been in had the breach not occured
restitution
When a court tells the parties in a contract to do what they promised to do. This usually happens when just giving money as compensation isn’t enough to solve the problem.
specific performance
