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35 Cards in this Set
- Front
- Back
Most common types of contract remedies (3) |
1. Monetary 2. Equitable remedies of specific performance and injunction 3. Restitution |
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Contract remedies are available to protect one or more of the following interests of the injured party for three reasons: |
1. Expectation interest 2. Reliance interest 3. Restitution interest |
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Expectation interest |
Which is his interest to in having the benefit of his bargain by being put in as good as a position a the one he would have occupied had the contract been performed. |
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Reliance interest |
Which is his interest in being reimbursed for loss caused by reliance on the contract by being put in a position as goods as the one he would have been in had the contract not been made |
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Restitution interest |
Which is his interest in having restored to him any benefit the he has conferred on the other party |
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Compensatory damages |
Contract damages placing the injured party in a position as good as the one he would have held had the other party performed; equals the loss of value minus loss avoided by injured party plus incidental damages plus consequential damages. |
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Compensatory damages (four types) |
Loss of value Costs avoided Incidental damages Consequential damages |
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Loss of value |
Value of promised performance minus value the value of actual performance |
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Cost avoided |
Loss or costs the injured party avoid by not having to perform |
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Incidental Damages |
Damages arising directly out of a breach of contract |
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Consequential damages |
Damages not arising directly out of a breach of contract but arising as a forseeable result of the breach |
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Nominal damages |
A small sum awarded where a contract has been breached but the loss is negligible or unproved |
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Reliance damages |
Contract damages placing the injured party in as good of a position as she would have been in had the contract not been made. |
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Damages for misrepresentation (two types) |
1. Benefit of the bargain 2. Out of pocket damages |
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Benefit of the bargain |
Difference between the value of the fraudulent party's performance as represented and the value the defrauded party received. |
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Out of pocket damages |
Difference between the value given and the value received |
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Punitive damages |
Generally not recoverable for breach of contract |
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Liquidated damages |
Reasonable damages agreed to in advance by the parties to a contract |
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Limitations on damages (3 types) |
1. Forseeability 2. Certainty 3. Mitigation |
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Forseeability |
Potential loss that the party in default had reason to know of when the contract was made |
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Certainty of damages |
Damages are not recoverable beyond an amount that can be established with reasonable certainty (can be a problem--ticket sales example) |
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Mitigation of damages |
Injured party may not recover damages for loss he could have avoided by reasonable efforts |
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Remedies in equity--(3 types) |
Only allowed where there is not adequate remedy at law 1. Specific performance 2. Injunction 3. Reformation |
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Specific performance |
Court decree ordering breaching party to render promised performance |
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Injunction |
Court order prohibiting a party from doing a specific act |
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Reformation |
Court order correcting a written contract to conform with the original intent of the contracting parties |
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Definition of restitution |
Restoration of the injured parties to the position she was in before the contract was made |
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Availability of restitution (4) |
1. Party injured by breach 2. Party in default 3. Statute of frauds 4. Voidable contracts |
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Party injured by breach |
If the other party totally breaches the contract by nonperformance or repudiation |
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Party in default |
For any benefit conferred in excess of the loss caused by the breach |
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Statute of frauds |
Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred upon the other party in reliance of the contract |
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Voidable contracts |
A party who has avoided a contract is entitled to restitution for any benefit conferred on the other party |
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Limitations on remedies (2) |
1. Election of remedies 2. Loss of power of avoidance |
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Election of remedies |
If remedies are not inconsistent, a party injured by a breach of contract may seek more than one |
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Loss of power of avoidance |
A party with the power to avoid a contract may lose that power (?) |