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Flashcards in Page 58 Deck (25):

When are nominal damages given?

If the aggrieved party hasn't suffered any actual damages, usually anything from a dollar or below is given to show vindication of the wrong


What are non-compensatory damages?

Nominal damages, punitive damages


What are the two reasons that nominal damages might be given?

- to establish a precedent
- if substantial damage is probably occurred but can't be actually established


What are Punitive damages for in contacts?

Punishing malicious, willful, and wanton conduct and to deter others


What is rescission?

An order that says parties are no longer contractually obligated to each other


What is quantum meruit?

Payment to restore the service providing party to the status quo at the time of breach


Why can't you sue for quantum meruit if performance is complete?

Because that would mean suing for damages


What is an example of Quantum meruit?

Hiring someone to paint your house for $5000, and when they're just about to finish you tell them to leave. The value of the paint job at that point was $7000. He will be given $7000 because he recovers the value of the benefit conferred


If The reason for stopping performance is one in good faith, does that mean the defendant doesn't owe quantum meruit?UCC

No, he still owes the value of the work performed


What is a third-party contract?

Performance/benefit given to someone that isn't a party. The third-party stands in the shoes of the contracting party, is expressly named as a third-party beneficiary, and performance runs directly to him


A third-party must have been what in order for third-party contract to be valid?

Contemplated when the contract was made


What is a classic example of a third-party contract?

Life insurance where the policyholder and the company enter a contract, but the benefit goes to a third-party


All that a contract needs to be a TPB contract is what?

One promise whose benefit goes to a third-party


Is it possible to have more than one third-party beneficiary in one contract?



Even though Someone is a third-party beneficiary, why might he not have a claim against the promisor?

Because his rights come from the contract between the original contracting parties


What are the key steps in TPB situations?

- label the parties
- consider defenses
- look at vesting


What are the two different views on TPB situations?

- Original common law: not enforceable because third-party had to have given consideration and been in privity
- modern law: TPB can sue


What are the two different views on TPB contracts?

- majority view first restatement
- Minority view second restatement


Under the majority view for TPB contracts, what is the approach?

Classify the TPB as either donee beneficiary, creditor beneficiary, or incidental beneficiary


What is a donee beneficiary under the first restatement view of TPB?

Promisee intends to give plaintiff a gift (either a promise or to confer a right on him). Gives donee a direct claim against the promisor


Under third-party beneficiary contract, what are the three major parties?

- promisor: usually the defendant or the person that enforcement is sought against
- promisee: person making the promise
- plaintiff: the alleged beneficiary or the person getting the benefit


Does the promisee under a donee beneficiary situation owe a duty to the beneficiary?



If a promise is to make a gift to a TPB, is it OK if the primary purpose was a gift, but that wasn't the only purpose?



If you see your lawyer to make a will and leave everything to your husband, what kind of beneficiary is the husband considered?

Donee, even though the services given are between you and the lawyer


Must a beneficiary be identified at formation of the TPB contract?

No, he just has to be identifiable when performances due