06.03 Remedies Flashcards
Who is entitled to contract remedies?
The general rule is that those who are a party to a contract are entitled to collect remedies when that contract is breached. Those who are parties to a contract are referred to as having privity of contract.
What are exceptions to the requirement of privity of contract for entitlement to remedies?
Assignments and delegations, as well as third party beneficiary contracts, bring in third parties to contractual relationships who are entitled to remedies for breach of the underlying contract.
What are the types of remedies?
Compensatory damages; consequential damages; incidental damages; nominal damages; punitive damages; specific performance.
What are compensatory damages?
Damages that are economic in nature and compensate for direct losses and lost profits.
What are consequential damages?
Damages that are economic but restore the nonbreaching party’s indirect costs and anticipated losses.
What are incidental damages?
Include the costs of rehiring or finding another job and the costs of searching for another piece of land or another buyer, as well as any expenses made in trying to close the sale or prepare the property.
What are nominal damages?
Those awarded to a nonbreaching party that has not experienced any compensatory or other damages.
What are punitive damages?
Damages awarded to a party to a contract who has been harmed by the fraudulent acts of another in the formation of a contract.
What is specific performance?
Available for unique property, but not for personal services or ordinary goods.
When is a file suit for breach of contract used?
This option is used mostly if breach takes place before delivery or buyer improperly rejects the goods.
True or False: If the goods are specially manufactured and cannot be resold, the seller’s remedy is the full contract price.
True.
What does it mean to retain the buyer’s deposit?
Where the seller justifiably withholds delivery of goods and the buyer has made a deposit or payment and there is no liquidated damage clause, the seller may keep $500 or 20% of the purchase price, whichever is less.
