CH 18 - Breach of Contract & Remedies

Question 1

monetary damages

Answer 1

compensatory: damages that compensate nonbreaching party for losses sustained as result of breach
consequential: damages resulting indirectly from breach, which were reasonably foreseeable to breaching party at time of breach
punitive: damages designed to punish and deter future wrong doings by breaching party
nominal: damages awarded to non-breaching party for technical injury but no actual damages
incidental: expenses or costs caused by breach of contract

Question 2

equitable remedies

Answer 2

only occurs when monetary damages are inadequate

Question 3

rescission & restitution

Answer 3

rescission: contract cancelled by agreement or court
restitution: if any goods or money were transferred, must give back if contract is cancelled

Question 4

specific performance

Answer 4

try to require breaching party to perform exactly as stated in contract

Question 5

reformation

Answer 5

remedy that allows contract to be rewritten to reflect true intent of parties (mutual mistake)

Question 6

recovery based on quasi contracts

Answer 6

recovery under quasi-contract is equity-based remedy b/c contract intended to prevent unjust