Remedies Flashcards
(13 cards)
What is compensatory damages?
- Damages normally in form of cash compensation
- Aim to put injured party in position they were in before contract was performed
- Damages can be liquidated or unliquidated
- Liquidated = fixed amount set in contract, in case of event of breach
- Unliquidated = no fixed amount set in contract so courts decide compensation amount
- Mitigation of loss = Look at whether either party did anything to prevent the event happening/worsening
What are liquidated damages?
- A fixed amount stated in contract, in case of breach
- If seen as improper then courts can ignore
What are unliquidated damages?
- No fixed amount in contract
- Courts look at causation and remoteness of damage
- Courts decide amount compensated
What is mitigation of loss in compensatory damages?
- D proves that C did nothing to minimise the loss that occurred
- Courts look at if D just sat back and let the breach get worse
What are equitable remedies?
Specific Performance
- Forces D to carry out obligations
- Courts can order specific performance
- If specific performance causes hardship for D, then courts will not order it
Rescission
- Contract is set aside
- Brings parties back into position then were in before entering the contract
What is specific performance in equitable remedies?
- Forces D to carry out obligations
- Courts can order specific performance
- If specific performance causes hardship for D, then courts will not order it
What is rescission in equitable remedies
- Contract is set aside
- Brings parties back into position then were in before entering the contract
What is termination of contract for breach?
Breach occurs when:
>Party doesn’t perform their obligations
>Party fails to reach standards set/expected in contract
>Party unlawfully repudiates contract
- Consequence of breach depends on type of term breached
Breach of Condition
- Can sue for damages and/or repudiation of contract
Breach of Warranty
- Can sue for damages only
Breach of Innominate Term
- Can sue immediately or wait till breach is done and then sue
When does breach occur?
When a party:
- Doesn’t perform their obligations
- Fails to reach standards set/expected in contract
- Unlawfully discharges contract
What does a breach of condition allow for?
- Can sue for damages
- Can discharge the contract
What does breach of warranty allow for?
- Can sue for damages only
What does breach of innominate term allow for?
- Can sue immediately or can wait for breach to happen then sue
What are the two types of equitable remedies?
- Specific performance
- Rescission
