chp 14 test 3 genb

Compensation for the nonbreaching party as a consequence of relying on the breaching party's promise to perform

reliance interest

_____ are damages agreed to in the contract that are payable in case of breach.

liquidated damages

Contract remedies protect..? a restitution interest a reliance interest an expectation interest all of the above

all of the above

Restitution is available.. when the contract was avoided because of incapacity when the other party breached when the party seeking restitution breached all of the above

all of the above

In a contract, money paid to satisfy the nonbreaching party for the direct loss suffered is called _____.

compensatory damages

In contract, damages paid to compensate the nonbreaching party for the direct loss suffered.

compensatory damages

Damages attributable to losses that flow from events that do not occur in the ordinary course of events are... incidental damages liquidated damages consequential damages punitive damages

consequential damages

Those losses or injuries which are a result of a breach of contract but are not direct and immediate.

consequential damages

Money paid by one party to another to satisfy a liability.

damages

_____ is a type of legal remedy where money is paid by one party to another to satisfy a liability.

damages

The situation of a plaintiff in a civil lawsuit having multiple causes of action from which to choose as to how the defendant's wrong may be righted

election of remedies

A(n) _____ is the benefit for which the promisee bargained in the contract, and the contract remedy is to put him in a position as good as that which he would have been in had the contract been performed.

expectation interest

The interest of a party to a breached contract in receiving the benefit of the bargain by being put in a position as good as he or she would have been in had there been no breach.

expectation interest

Upon repudiation of an oral contract governed by the Statute of Frauds, the nonbreaching party is entitled to her expectation interest. t or f

false Upon repudiation of an oral contract governed by the Statute of Frauds, the nonbreaching party is not entitled to her expectation interest, but she may recover in restitution unless the purpose of the statute would be frustrated.

The fundamental purpose of remedies in noncriminal cases is to punish the breaching party. t or f

false.. The fundamental purpose of remedies in noncriminal cases is not to punish the breaching party but—if possible—to put the nonbreaching party in the position he or she would have been in had there been no breach.

In contract, _____ is the requirement that damages from a breach be proximately caused by the breach

foreseeability

In contract, the requirement that damages from a breach be proximately caused by the breach.

foreseeability

Compensation for commercially reasonable expenses incurred as a result of the other party's breach.

incidental damages

_____ is compensation for commercially reasonable expenses incurred as a result of the other party's breach

incidental damages

A judicial order directing a person to stop doing that which he or she should not do.

injunction

A(n) _____ is a type of equitable remedy that directs a person to stop doing what he or she should not do.

injunction

In the context of remedies, what is lost volume? It is the return of goods or money to put the nonbreaching party in the condition as if the contract had not been made. It is a judicial order directing a person to stop doing that which he or she should not do. It is the damages paid for loss of profits on an item of inventory. It is a judicial order directing a person to deliver the unique thing contracted for by the other party. It is the amount of trust lost between two parties in contract.

it is the damages paid for loss of profits on an item of inventory.

A nonbreaching party might have one or more interests that the law seeks to realize: expectation, reliance, and restitution.

key takeaways

As the purpose of contract remedies is, in general, to make the nonbreaching party whole, the law allows several types of damages (money paid) to reflect the losses suffered by the nonbreaching party. Compensatory damages compensate for the special loss suffered; consequential damages compensate for the foreseeable consequences of the breach; incidental damages compensate for the costs of keeping any more damages from occurring; nominal damages are awarded if the actual amount cannot be shown or there are no actual damages; liquidated damages are agreed to in advance where the actual amount is difficult to ascertain, and they are allowed if not a penalty; and punitive damages may sometimes be allowed if the breaching party's behavior is an egregious tort, an outrage.

key takeaways

Equitable remedies for breach of contract are available when legal remedies won't make the nonbreaching party whole. The equitable remedies are specific performance (an order directing a person to deliver to the buyer the unique thing the seller contracted to sell), injunction (an order directing a person to stop doing that which he should not do), and restitution (the return by one party of the benefit conferred on him when the contract is not performed, to the extent necessary to avoid imposing a penalty on the breaching party).

key takeaways

Remedies are intended to make the nonbreaching party whole. The two categories of remedies for breach of contract are legal and equitable. In the legal category are damages; in the equitable category are specific performance, injunctions, and restitution. The law does not force a party to perform; he or she always has the power (though not the right) to breach, and may do so if it is economically more advantageous to breach and suffer the consequence than to perform. Remedies, though, are not (usually) intended to punish the breaching party.

key takeaways

There are several limitations on the right of an aggrieved party to get contract remedies for a breach besides any limitations fairly agreed to by the parties. The damages suffered by the nonbreaching party must be reasonably foreseeable. The nonbreaching party must make a reasonable effort to mitigate damages, or the amount awarded will be reduced by the damages that could have been avoided. The party seeking damages must be able to explain within reason how much loss he has suffered as a result of the breach. If he cannot articulate with any degree of certainty—if the damages are really speculative—he will be entitled to nominal damages and that's all. There are circumstances in which a party who could have got out of a contractual obligation—avoided it—loses the power to do so, and her remedy of avoidance is lost. Not infrequently, a person will enter into a contract for services or goods that contains a limitation on her right to damages in case the other side breaches. That's all right unless the limitation is unconscionable. Sometimes parties are required to make an election of remedies: to choose among two or more possible bases of recovery. If the remedies are really mutually exclusive and one is chosen, the aggrieved party loses the right to pursue the others. And of course a person is always free not to pursue any remedy at all for breach of contract; that may be strategically or economically smart in some circumstances.

key takeaways

Damages agreed to in the contract that are payable in case of breach.

liquidated damages

Damages for loss of profits on an item of inventory

lost volume

The plaintiff's duty to take reasonable steps to minimize his or her damages or losses and to attempt to prevent further damage

mitigation of damages

The plaintiff's duty to take reasonable steps to minimize his or her damages or losses and to attempt to prevent further damage is called _____.

mitigation of damages

Damages in name only, as where actual damages are nonexistent or cannot be proved.

nominal damages

In a situation where there has been a breach but the nonbreaching party has really suffered no loss or cannot prove what his loss is, he is entitled to _____.

nominal damages

When breach of contract caused no monetary loss, the plaintiff is entitled to... special damages nominal damages consequential damages no damages

nominal damages

Damages to punish the breaching party

punitive damages

_____ are those damages awarded for the purpose of punishing a defendant in a civil action, in which criminal sanctions are of course unavailable.

punitive damages

A(n) _____ is the loss suffered by abiding by the contract and taking actions consistent with the expectation that the other party will abide by it.

reliance interest

Restoration; returning goods or money to put the nonbreaching party in the condition as if the contract had not been made

restitution

_____ is a type of equitable remedy that returns goods to put the nonbreaching party in the condition as if the contract had not been made

restitution

A(n) _____ is that which restores to the promisee any benefit he or she conferred on the promisor.

restitution interest

The nonbreaching party's interest in being returned to the position it would have been in had the promises never been made. Where this is not possible, then restitution disgorges any unjust enrichment.

restitution interest

An order directing a person to deliver the unique thing contracted for by the other party.

specific performance

Which of the following is an equitable remedy?

specific performance

_____ is a type of equitable remedy that directs a person to deliver the unique thing contracted for by the other party.

specific performance

A restitution interest is..? the benefit for which the promisee bargained the loss suffered by relying on the contract that which restores any benefit one party conferred on the other none of the above

that which restores any benefit one party conferred on the other

A reliance interest is the loss suffered by relying on the contract and taking actions consistent with the expectation that the other party will abide by it. t or f

true

Consequential damages will not be allowed if those damages are not foreseeable t or f

true

Contract remedies serve to protect a reliance interest. t or f

true Contract remedies serve to protect three different interests: an expectation interest, a reliance interest, and a restitution interest. A promisee will have one of these and may have two or all three.