Chpater 18: Remedies

Legal Remedies (damages) three principles

A party can recover damages only for those losses that they can prove with reasonable certainty. losses that are purely speculative recoverable A breaching party is responsible for paying only those losses that were foreseeable to him at the time of contracting. Plaintiff injured by a breach of contract have the duty to mitigate (avoid or minimize) damages.

Compensatory Damages

A person who has been injured by a breach of contract is entitled to recover compensatory damages Normally, compensatory damages include 1 or more of three possible items: 1)Loss in value 2)Allowable consequential damages 3)Any allowable incidentals

Legal Remedies (damages)

An injured parties ability to recover damages in a contract action is limited by three principles

Equitable Remedies

In exceptional cases in which money damages alone are not adequate to fully compensate for a party's injuries, a court may grant an Equitable Remedy either alone or in combination with a legal remedy.

Alternative damages

The normal measure of compensatory damage is not appropriate in every case. When it is not appropriate, a court may use an alternative measure of damages.

Liquidated Damages

The parties to a contract may expressly provide their contracts that a specific sum shall be recoverable if a contract is breached.

Loss in Value

The starting point in calculating compensatory damages is to determine the loss in value of the performance that the plaintiff had the right to expect.

Punitive Damages

awarded in addition to the compensatory remedy that are designed to punish a defendant for particularly reprehensible behavior and to deter the defendant and others from commenting similar damages.

Consequential Damages (Also Called Special Damages)

compensate for losses that occur as a consequence of contract.

Incidental Damages

compensate for reasonable cost that injured part incurs the breach in an effort to avoid further loss.

Specific Performance

is an equitable remedy whereby the court orders the breaching party to perform his contractual duties as promised.

Nominal Damages

very small damages awards that are given when a technical breach of contract has occurred without causing any actual or provable economic loss.