Breach Flashcards
Breach (nonperformance)
Failure to honor promise of performance when that performance is due.
Four Elements of Breach
(1) Determine the existence and content of the contractual undertaking, (2) Establish the date the the promised performance fell due, (3) Decide if the performance complied with the promise, Any shortfall from the promise is a breach, (4) If breach did occur, decide on the the severity and on victim’s rights.
Total and Material Breach
Breach is serious and fundamental enough to allow the victim to withhold return performance, terminate the contract, and sue for damages that resulted from breach.
Non-material Breach
Victim must perform contract; confined to damages compensating shortfall in performance.
Expectation Damages
Compensatory damages in a contract action, which place the injured party in the same position he would have been in had he received the full benefit for which he contracted.
Reliance Damages
Contract damages awarded for breach that seek to return the plaintiff to the position she would be in if she had not relied on the promises of the breaching party.
Restitution Damages
Compensation granted to remedy the defendant’s unjust enrichment that occurred at the plaintiff’s expense.
Damages Based on Disgorgement
Occurs when promisor gained a benefit from breaching the contract, Restores promisor to the state that they would have been in if the breach had not occurred.
Remedies Based on Specific Relief
Specific performance and injunctive relief
Specific Performance
An equitable remedy that requires a specific action when monetary damages are inappropriate or too difficult to ascertain.
Injunctive Relief
An equitable remedy whereby the court does not order damages but instead instructs a party to do something or refrain from doing something.
Stipulated Remedies/Damages
Damages that the parties agree upon in advance that must be paid if one party breaches. The remedy must be a reasonable estimation of harm, not punitive.
