Contracts Flashcards

Question

Want of Consideration

Answer 1

Lack of consideration for a contract. Example: On Mrs. Retirement’s last day of work, Boss promised to give her a $1000 bonus for the past 20 years of service she provided to the company. Unfortunately for Mrs. Retirement, Boss never gave her the money. (In this case, there is want of consideration to form a legally binding contract, because Mrs. Retirement’s service occurred in the past, therefore it is not considered valid.)

Answer 2

Courts generally do not require that consideration have any substantial value or that it benefit the promisee; all that is required is that there be some legal detriment to the promisor so that the consideration serves as an inducement for the return promise of the promisee. Example: Joe makes a valid offer to Bob. Bob pays Joe $1.00 to hold open the offer for three days.

Answer 3

A contract that has been fully performed by all parties is called an executed contract. Example: Builder contracts with Customer to build a house at the price of $200,000 no later than June 1st, to be paid for within three days of completion. On May 25th, Builder finishes the house. On May 26th, Customer pays Builder $200,000.

Answer 4

A contract that remains to be completed by at least one of the contracting parties is called an executory contract. Example: Builder contracts with Customer to build a house at the price of $200,000 no later than June 1st, to be paid for in advance. On April 1st, Customer pays Builder $200,000. On May 1st, the house is only halfway finished and a dispute arises regarding the workmanship of Builder.

Answer 5

This rule holds that mutual consent exists if there was a "meeting of the minds" between the parties, meaning that the parties subjectively intended to enter into a legally binding contract and agree to the terms and conditions of the contract. A “Meeting of the Minds” is subtly different from “Mutual Assent” in that the former is subjective, whereas the latter is objective. Example (taken from “Problems in Contracts” text pg. 23): Seller and Buyer sign a written document in which Buyer agrees to buy a condominium in a new development. Buyer later claims that he did not understand that he was signing a contract and that he did not intend to buy the condo; he thought that the document he signed merely “reserved” the condominium but did not obligate him to buy. The Seller sues the Buyer for breach of contract and the case goes to trial. If the jury believes Buyer is telling the truth and if the jurisdiction requires a “meeting of the minds”, then the jury should find in favor of the Buyer. However, if the jurisdiction requires a manifestation of “mutual assent” then, in absence of fraud or other misconduct from Seller, the jury should find in favor of the Seller because both parties “outwardly” manifested their assent to the contract by having signed the document.

Answer 6

Mutual assent exists if a reasonable person would have objectively understood the outward actions and statements of the other party to indicate intent to enter into a legally binding contract and agreement to its terms and conditions. Example: Case: Lucy v. Zehmer, 196 Va. 493, 84 S.E.2d 516 (1954) One evening over drinks, Zehmer offers to sell his farm to Lucy for $50,000. The two men discussed the sale for nearly an hour. The men drew up a contract to which they signed, including Zehmer’s wife. However, Zehmer’s secret and subjective intent was merely as a joke to get Lucy to admit that Lucy did not have $50,000. Lucy sued Zehmer for specific performance. (The trial court ruled for Zehmer. On appeal, the judgment was reversed and remanded on the basis that the court looks to the objective, outward expressions rather than the inward, subjective intents of the parties. The test is whether or not a reasonable person would conclude the party’s actions constituted a valid offer.)

Answer 7

Merit Music v. Sonneborn: the court held that in the absence of fraud, duress, or material mistake, a party to a contract with the capacity to understand the written document, will be bound by his or her signature whether or not he read the document. Example: Bob signs a contract with Frank to buy the mare, Supra, for $20,000 but does not read the contract’s terms and conditions. (Bob will be bound to the terms and conditions of the sale even though he did not read them.)

Answer 8

A contract manifested in words, whether written or oral, is called an express contract. Example 1: Joe makes a valid offer to Bob. Bob pays Joe $1.00 to hold open the offer for three days. Bob tells Susan he will buy her lawn mower for $100. Susan agrees. Example 2: John and Frank sign a written contract that states Frank will pay John $5,000 to clear a five acre parcel Frank owns.

Answer 9

A contract that is inferred by law because the acts or conduct of the parties and the surrounding circumstances make it reasonable to assume that a contract exists between them even though the contract was never manifested by words is called an implied in fact contract. Example: Annette’s horse is ill and she calls the local equine veterinarian and schedules an appointment for the veterinarian to visit her barn the following morning. (Although there is no verbal agreement, it is implied that the veterinarian will treat the animal and that Annette will pay for the treatment provided.)

Answer 10

An implied-in-law contract is a remedy that is imposed by operation of law to do justice even though it is clear that no promise was ever manifested by words or ever intended. The creation of an implied-in-law contract will be recognized when one party accepts or retains benefits that have been conferred upon him by another party who expected to be paid and who was not a volunteer. Example: John is lying unconscious on the road when a passerby notifies local emergency. John is transported to the hospital by American Ambulance Co. and then treated for three days by County Hospital while he remains in a coma. On the fourth day, he awakens from his coma. (Although John was unconscious and therefore did not request the medical services he received, the law will impose a quasi-contract in this case because he retained valuable benefits from American Ambulance and County Hospital for which they expected to be paid.)

Answer 11

Quantum Meruit (Latin for “as much as he deserved”), refers to the reasonable value deserved for one's labor, and is awarded in a quasi-contract claim. Example: John is lying unconscious on the road when a passerby notifies local emergency. John is transported to the hospital by American Ambulance Co. and then treated for three days by County Hospital while he remains in a coma. On the fourth day, John awakens from his coma and asserts that he will neither pay the hospital or the ambulance company. Subsequently, the hospital and ambulance company bring suit against John. The court rules in favor of the hospital and the ambulance service, awarding an amount that is reasonable for the services John received from each.

Answer 12

Quantum Valebant (Latin for as much as it is worth) refers to the reasonable value that is deserved as payment for goods, and is awarded in a quasi-contract claim. Example: ( ??? Builder is hired by Owner to put in a swimming pool. The contract does not specify which filtration system Builder is to install. Builder installs the best and most expensive one he has available. Builder stayed within the estimated price. After the job is complete Owner objects to the filtration system, stating she did not agree to the most expensive one available and refuses to pay the difference in price between the least expensive filtration system and the most expensive one. )

Answer 13

A requirements contract is a contract in which the seller agrees to supply all of the goods or services that the buyer needs over a specified period of time. As consideration for the seller's promise, the buyer agrees to obtain the goods or services exclusively from the seller. Example: American Baseball Equipment Supply contracts with Tykes Little League to supply all the uniforms Tykes Little League needs for the 2015 season.

Answer 14

An output contract is a contract in which the buyer agrees to buy all of the goods or services a seller can produce over a specified period of time. Example: American Bakery contracts with Sugar Farms to purchase all of the sugar they can produce during the 2015 growing season.

Answer 15

An option contract is a contract, which includes an option; that is, an agreement between parties, supported by consideration and involves a promise to hold an offer open for a specified period of time. Example: On Monday, Seller offers to sell Buyer his car for $5,000. Buyer will not have the full amount until he gets paid, so he gives Seller $100 to hold the car until 7pm on Friday.

Answer 16

A void contract is a contract, which cannot be enforced by either of the parties. Example: Mr. Miserable hires Miss Shooter to kill his wife for $50,000. (This is a void contract because murder is illegal.)

Answer 17

A voidable contract is a contract that can be disaffirmed by one or more of the parties for reasons related to legal immaturity or mental incapacity. Example: Miss Underage, a twelve-year-old girl, agrees to purchase Mr. Motorcycle’s 1995 Harley Davidson motorcycle for $5,000. (Because Miss Underage is a minor, this contract may be disaffirmed, thereby making it a voidable contract.)

Answer 18

A contract made by a minor is voidable at the minor’s option, although she may enforce the contract against the adult. In general, a minor is not liable for the value of benefits she received under the contract, although if she disaffirms the contract, she must return anything that she received and still retains at the time the contract was disaffirmed except for “necessaries” such as food, shelter, clothing, healthcare, etc. Example 1: Adult contracts with Minor to sell Motorcycle to Minor for $2500. (Minor may disaffirm the contract if she wishes, but adult may not.) Example 2: Adult contracts with Minor for a 12-month lease on a small apartment at the price of $500 per month. Minor lives in the apartment for four months, then loses her job and cannot pay for months five and six. She decides to disaffirm the contract and move. (Minor has the power to disaffirm this contract and is not responsible for the rest of the lease, but she is liable in restitution for the value of months five and six.)

Answer 19

An exculpatory clause is a provision in a contract that is intended to remove liability from one or more of the contracting parties that may result from certain acts or events. Example: American Car Lot provides parking services but the parking stub states they are not liable for any damage to Customer’s vehicle while it is parked on the lot.

Answer 20

An adhesion contract is a contract drafted by the stronger of two parties, with terms favoring the stronger party, and offered to the weaker party with little or no negotiation as to the already-drafted terms. Example: Employee must sign a contract with Employer with terms that state any and all disputes that may arise between Employee and Employer must be settled via arbitration.

Answer 21

An unconscionable contract is a contract with a provision that no fair an honest person would make and no person in his or her right mind would accept. Such contracts are usually agreed to through "oppression" in that the promisee knows that he or she is giving up his or her rights but is forced to if he or she wishes to purchase the subject product. Or, he or she is not aware of the rights that are being given up but through "unfair surprise" (such as small print or vagueness in terms) signs the contract anyway. Case Example: Williams v. Walker-Thomas Furniture Co., 350 F.2d 445 (D.C. Cir 1965) Walker-Thomas Furniture Co., a retail furniture store, sold multiple items to a customer from 1957 to 1962. The extended credit contract was written so that until all of the furniture was paid for, none of the items were considered as having been purchased. When the plaintiff defaulted and failed to make payments on the last item of furniture, the furniture store attempted to repossess all of the furniture sold since 1957, not just the last item. The District of Columbia Court of Appeals returned the case to the lower court for trial to determine further facts, but held that the contract could be considered unconscionable and negated if it was procured due to a gross inequality of bargaining power.

Answer 22

A condition is an act or event, which affects a duty to render performance. A condition may be express or implied, and may be a condition precedent, a condition concurrent, or a condition subsequent. Example: Seller agrees to sell his home to Buyer for $250,000 provided Buyer is approved for a mortgage within 10 business days of the contract date.

Answer 23

A condition precedent is related to an event, other than the lapse of time, which must occur before a duty on the part of the defendant will arise. It may arise out of an express or implied term of the contract, or by operation of law under the Doctrine of Constructive Conditions. Example: Buyer agrees to purchase Seller’s home for $250,000 provided the home passes inspection and VA loan requirements.

Answer 24

A condition concurrent is a type of condition precedent, which exists when the parties to a contract are bound to render performance at the same time. Example: Banker agrees to give Borrower a 2nd mortgage, provided Contractor with a lien on the Borrower’s home to move into third position.

Answer 25

A condition subsequent is related to an event, which by agreement of the parties, operates to terminate a duty of performance after it has arisen. Example: Employee signs a contract to work for Employer for one year provided that he is not accepted to Harvard Law School.

Answer 26

An express condition is stated in the contract and generally will be strictly and literally enforced by the courts. Example: Customer hires Auto Shop to paint her car for the price of $800.00. The contract requires ½ to be paid when she drops off the car and the remaining ½ upon pick-up.

Answer 27

An implied-in-fact condition is one which is necessary to the performance of the contract between the parties and therefore is deemed to have been intended by the parties, but is not expressly stated. Example: Landlord and Tenant enter into a lease agreement stating that Landlord will maintain and repair the dishwasher furnished in the apartment. (Although the contract does not expressly state the fact, it is implied that Tenant will notify Landlord in the event the dishwasher needs repair. Therefore, if Tenant does not do so, Landlord cannot be held responsible for failing to repair the dishwasher if he was never notified.)

Answer 28

A constructive condition is an implied-in-law condition, which the law will enforce even though the parties did not agree. Example:

Answer 29

The Doctrine of Conditions holds that the fulfillment of a promise in a bilateral contract can be construed to be a condition of the other party's performance even in the absence of an express provision to that effect. Example:

Answer 30

Under the Doctrine of Substantial Performance, a plaintiff who has failed to perform a constructive condition in a minor or immaterial respect may nevertheless recover on the contract. In order to recover, the plaintiff must prove: 1) The defendant got substantially what he bargained for, 2) the defendant can be reimbursed for what he did not receive, 3) there will be a great hardship on the plaintiff if he is denied recovery under the contract, and 4) the deviation was not willful. Example: Owner and Contractor enter into an agreement that Contractor will build Owner a new house for $250,000 by June 15, 2014. Contractor completes everything except installing light switch plates, electrical outlet covers, and interior doorknobs. Unfortunately, the contractor was not able to complete the job on time. (In this case the Contractor will recover)

Answer 31

An implied condition of cooperation is implied in a contract whenever the cooperation of the promisee is necessary for the performance of the promise. Example: “Seller promises to deliver certain goods to the ‘No. 2 loading dock’ of Buyer’s factory. It is an implied condition to Seller’s duty to deliver the goods that such a loading dock exists, that the dock is reasonably accessible for making a delivery, and that Buyer permits Seller to make the delivery at the dock.” (Gilbert’s pg. 236)

Answer 32

A waiver of condition results when a party to a contract voluntarily relinquishes his or her known right to assert the non-performance of a condition. A waiver can be given by express agreement or by conduct. A waiver may be retracted except where the other party has detrimentally relied on the waiver. A waiver is enforceable if it is given in exchange for separate consideration. It is also enforceable without separate consideration if a) the waived condition was not a material part of the agreed-upon exchange, and b) uncertainty of the occurrence of the condition was not an element of the risk assumed by the party who gave the waiver. Example: Owner and Contractor enter into an agreement that Contractor will build Owner a new house for $250,000 by June 15, 2014. Contractor calls owner on May 15 and explains to Owner that some familial circumstances have occurred and are serious enough to warrant taking some time off to attend to the family. Contractor asks Owner if it is ok to extend the completion deadline by 10 days, thus making the deadline June 25, 2014. Owner agrees and Contractor takes ten days vacation. (In this case, Owner may not retract the waiver because Contractor detrimentally relied on the Owner’s waiver.)

Answer 33

An excuse of condition occurs when the plaintiff's duty to perform is excused because the defendant has defaulted. Example: Landscaper and Business enter a contract that Landscaper will maintain the grounds around the building at the price of $400.00 per month for the year 2014, beginning January 1. On May 15th, Business owner has defaulted on his payments to Landscaper. (In this case, Landscaper may refuse to perform.)

Answer 34

An assignment is a transfer of a contractual right. A contractual right is an intangible property and is called a "chose in action." When a valid assignment has been made, the person receiving the transfer (the assignee) steps into the shoes of the person making the transfer (the assignor) and is now the proper party to enforce the contract. Example: Owner has mortgaged his home to ABC Bank. ABC Mortgage sells Owner’s mortgage to 123 Bank, creating a valid Assignment. Owner must now make his monthly payments to 123 Bank instead of ABC Mortgage.

Answer 35

A divisible or severable contract is a bilateral contract in which the performance is divided into two or more separate units, either as to subject matter or time, and performance of each part by one party is the agreed exchange for a corresponding part by the other party. Some typical examples are construction contracts, contracts for the sale of goods and employment contracts. Example: Owner and Contractor enter into an agreement for Contractor to roof Owner’s home for $5K, build a pole barn for $10K, and pave the driveway to the barn for $5K, for a total price of $20K. (This contract is divisible into each of the three separate jobs.)

Answer 36

The case that held that a third party beneficiary has the right to enforce the contract, which will confer a benefit upon said third party. Example:

Answer 37

A delegation and assumption of duties is a transfer of a contractual obligation. It involves a situation in which the assignor transfers his or her duty of performance to another. The person transferring the duty of performance is known as the delegator and the person who assumes the duty is known as the delegatee. Any duty may be delegated unless the obligee has a substantial interest in having the original obligor perform the duty personally. Example 1: Artist and Luanne enter into a valid contract for Artist to paint Luanne’s portrait for $500.00. (Artist may not delegate her duty to perform to another artist because this is too personal of a duty.) Example 2: Owner and Contractor enter into a valid contract for Contractor to build a pole barn and a garden shed. Due to an unforeseen circumstance, Contractor is unable to build the garden shed and delegates the job to Joe Builder. (This delegation is acceptable because building a garden shed is not too personal of a duty to restrict the delegation.)

Answer 38

A creditor beneficiary is an intended third party beneficiary who receives the benefit of a contract in satisfaction of an actual or supposed debt or obligation that existed between the third party beneficiary and the promisee to the contract. Modernly, a creditor beneficiary is typically called simply an "intended beneficiary." Example: Owner and Contractor enter into a valid contract for Contractor to build a garden shed for $500. Contractor owes Joe Subcontractor $500 from another job so he tells Owner to pay Joe instead. Owner agrees and Contractor notifies Joe that Owner will be paying him $500 when the garden shed is completed. (Joe Subcontractor is the Creditor Beneficiary.)

Answer 39

A third party beneficiary contract is a contract wherein performance by one party, the promisor, will confer a benefit upon a third party beneficiary, that is, a person or entity other than the promisee. Example: Owner and Contractor enter into a valid contract for Contractor to build a garden shed for $500. Contractor owes Joe Subcontractor $500 from another job so he tells Owner to pay Joe instead. Owner agrees and Contractor notifies Joe that Owner will be paying him $500 when the garden shed is completed. (Joe Subcontractor is the Third Party Beneficiary.)

Answer 40

A donee beneficiary is an intended third party beneficiary who receives the benefit of a contract as a gift from the promisee. Modernly, a donee beneficiary is typically called simply an "intended beneficiary." Example: Joe wants to propose to his girlfriend, Susan. Joe goes to Jeweler to purchase an engagement ring. After seeing one he thinks Susan will like, Joe purchases the ring. (Susan is the Donee Beneficiary.)

Answer 41

An intended beneficiary is one in whose favor the original parties to the contract purposefully created an obligation. A third party must be an intended beneficiary in order to have standing to sue to enforce the provisions of the contract. Example: Joe wants to propose to his girlfriend, Susan. Joe goes to Jeweler to purchase an engagement ring. After seeing one he thinks Susan will like, Joe purchases the ring. (Susan is the Intended Beneficiary.)

Answer 42

An incidental beneficiary is one who may receive the benefit of the performance of the contractual provisions only incidentally and was not intended to receive the performance as a gift nor in satisfaction of a debt. An incidental beneficiary does not have standing to sue to enforce the contract. Example: Owner and Contractor enter into a valid contract for Contractor to build a fence on the property line between the yards of Owner and Neighbor. Contractor defaults. (Neighbor is an Incidental Beneficiary and does not have standing to sue the contractor for failing to build the fence.)

Answer 43

A Donee Beneficiary is a recipient of the benefit as a gift. A Creditor Beneficiary is a recipient of the benefit due to a satisfaction of a debt owed.

Answer 44

A third party donee beneficiary has no rights against the promisee by reason of the promisor's failure to perform the contract. The "creditor" beneficiary, however, can sue the promisee on the original obligation since it remains unaffected by the third party beneficiary contract. Example:

Answer 45

A guaranty is a promise to answer for the debt, default, or miscarriage of another and must be in writing unless the guaranty was given in order to benefit the guarantor. Example: Son wants to purchase a car from Uncle under an installment plan divided into six equal monthly payments of $500. Father gives Uncle a written guaranty that Son will not default.

Answer 46

This requires that certain types of contracts be evidenced by a writing signed by the party to be charged, (the defendant), in a civil action. Those contracts which are customarily within the Statute of Frauds are: 1) a contract, which, by its terms, cannot be performed within one year from the making thereof, 2) a promise to answer for the debt or default of another, 3) a promise in consideration of marriage, 4) a contract involving an interest in real property, and 5) under the UCC, a contract for the sale of goods priced $500 or more. Example: Buyer agrees to purchase Seller’s vehicle for $10,000.00. (This contract must be in writing.)

Answer 47

The Parol Evidence Rule provides that where the parties have entered into an agreement that has been reduced to writing with the intent being to make that writing a final and complete expression of their contract, no evidence of a prior or contemporaneous agreement can be introduced to change the terms of that written contract. Even though the term "parol" is generally used to mean the same thing as "oral," the Parol Evidence Rule, as traditionally applied, prohibits introduction of any evidence, whether written or oral, where such evidence relates to a prior or contemporaneous agreement and is being introduced to change the terms of the written agreement. Therefore, the purpose of the rule is to lend certainty to the terms of written contracts by making it such that the parties to the contract are prevented from later contending that the contract did not really represent the full understanding of the parties. Example:

Answer 48

A modification is a subsequent agreement entered into for consideration for purposes of modifying the prior contract. Since the Parol Evidence Rule only bars evidence related to agreements made prior to or concurrently with the written contract, the rule does not apply to modifications. Under the UCC, consideration is not required for a modification to be binding. Example:

Answer 49

The Collateral Agreement Doctrine holds that additional terms which were intended by the parties and included in a separate agreement may be enforced even though such terms were not included in the original contract if this collateral agreement is one which 1) does not contradict any express provision of the main contract and 2) might naturally be made as a separate agreement between the parties. Therefore evidence related to a collateral agreement will not be excluded under the Parol Evidence Rule. Example:

Answer 50

An accord is an agreement to compromise an existing obligation, which has become the subject of a good faith dispute. Acceptance of the accord results in "satisfaction," meaning that the original obligation has been discharged with the accepting party no longer being able to charge the performing party with a breach of contract. Example: Creditor says that Debtor owes $10,0000. Debtor says that he only owes $8,0000. The parties agree to settle the debt at $9,000.00. (unliquidated debt Contracts 2, 5:00)

Answer 51

A novation is a new contract, which is in effect, an immediate discharge of a pre-existing contractual duty that creates a new duty in its place. It requires the replacement of one of the previously contracting parties with a new party who neither owed the previous duty nor was entitled to its performance. Example:

Answer 52

A release, at common law, was a complete discharge of existing contractual obligations given by one party to the contract to the other in a written document under seal. Modernly, in those jurisdictions that do not use the formal seal, a release is generally considered valid if supported by consideration. Example:

Answer 53

A merger is said to have occurred in a contractual situation when one contract supersedes or incorporates another. Example:

Answer 54

A mutual rescission is an agreement by the parties to an existing executory contract to consider their contract null and void. This rescission is a contract in itself and requires mutual assent and consideration. The consideration for rescission is usually found in the fact that all parties incur a legal detriment by giving up their right to sue each other. In a case involving an executed contract or a unilateral contract, an attempted rescission by mutual agreement would be lacking in consideration. Regarding an executed contract, the party who has received full performance is not giving up any right against the other, so he or she is incurring no legal detriment. Regarding a unilateral contract, the offeror only has the power to revoke the offer and terminate all obligations if revocation of the offer is communicated to the offeree before the offeree has materially changed his or her position in reliance upon the offer. Example:

Answer 55

A breach of contract occurs when one party to a contract fails to perform pursuant to the terms of the contract. Example:

Answer 56

A party to a contract will be released from an obligation to perform when, neither from his act nor from his neglect, and prior to being in default, it has become impossible for said party to perform. Example:

Answer 57

An anticipatory breach occurs when one party to a contract makes it clear prior to the time performance is due that he or she will not perform. An anticipatory breach may be expressed in words or by action. The promisee may elect to sue immediately for damages or may wait until after performance has become due to then file suit. Example:

Answer 58

Although performance is still possible, a party to a contract will be discharged from an obligation to perform when an unanticipated event occurs after the formation of the contract, with a result that the parties' main purpose in making the contract has become so frustrated that the benefit to be received by one party from the other party is now totally destroyed or materially impaired. Example:

Answer 59

Liquidated damages are an amount of damages stated in a contract in advance of any breach. If there is a valid liquidated damages clause in a contract, it will be the sole remedy available upon a breach of the contract. In order for such a clause to be found valid, it must be shown that it is based on anticipated damages as opposed to being a mere penalty. This is shown through establishing that damages would have been difficult to ascertain at the time the contract was made, and the amount set as liquidated damages is a reasonable forecast of what damages would be. Example:

Answer 60

Compensatory Damages include both general and special damages, and are awarded to the non-breaching party to place that the party in the same position that he or shoe would have been in, had the contract been performed as agreed. Example:

Answer 61

Consequential damages are special damages. However, this term reflects the "foreseeability" requirement that arose out of the case of Hadley v. Baxendale. It was held in this case that compensation in a breach of contract case should be given only for those injuries that the defendant, at the time the contract was made, had reason to foresee as the probable result of this or her breach. Damages that are unforeseeable will be held too remote and, therefore, uncollectible. Example:

Answer 62

The court gives nominal damages to a non-breaching party who has suffered no damages or who has been unable to prove damages at trial, but who nevertheless has been wronged and is entitled to a judgment for technical breach of contract. Example:

Answer 63

Mitigation of damages refers to efforts of the non-breaching party to use ordinary care to mitigate, or limit, the damages caused by the other party's breach. Example:

Answer 64

Punitive damages, which are also called Exemplary Damages, are damages that are granted to a plaintiff to punish the defendant for malicious, wanton, or willful conduct and are awarded to make an "example" of the defendant's conduct; so that such conduct will not be repeated again. Punitive or exemplary damages are not typically allowable for breach of contract. Example:

Contracts Flashcards

(90 cards)