Chapter 8: Agreed Damages Flashcards Preview

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Flashcards in Chapter 8: Agreed Damages Deck (15):
1

Agreed Damages (def)

AKA liquidated damages. Generally enforceable unless found to be a penalty

2

Agreed Damages (rule)

1) were the damages difficult to ascertain? 2) Is the amount states reasonable in light of actual or anticipated damages. (The more difficult 1, the more leeway to 2)

3

Covenant not to compete (def)

Cannot compete within an amount of time or locale with the employer

4

Liquidated damages (def)

States the amount the breaching party must pay

5

Merger (def)

Written doc contains all terms agreed and prior agreements are not valid unless in written contract

6

No oral modification (def)

Only in writing

7

Force majeure (Def)

List circumstances (natural disasters, wars) under which breach will not be penalized

8

Time is of the essence (def)

Expectation of timely performance

9

Choice of law (def)

States body of law that will govern the k dispute

10

Arbitration (def)

States that disputes will not be decided by court but rather arbitrated (rules about where, and who)

11

Indemnification (def)

If one party is sued for a matter relating to the k, the other party will pay for costs and award

12

No assignments (def)

Rights conferred cannot be assigned to another person

13

Savings (def)

If one part is unenforceable, the rest is not effected

14

Enforcement policies

Efficiency, predictability, freedom of k

15

Liquidated damages (rule)

1. Were the damages difficult to acertain?
2. Is the amount states reasonable in light of actual or anticipated damages.