chap09

Question 1

Remedies for Breach of Contract

Answer 1

*Suit for specific performance
or Injunction
(allowed only in some cases

*Restitution
(i.e. restoration of
benefits already receive

• Damages
  (i. e. monetary compensation of los

Question 2

Ordinary Damages

Answer 2

Definition:
which arise naturally in usual course [e.g. good/service bought at
higher price]
Rules:
Actual Damage allowed [e.g. market price– contract price]
Allowed, whether communicated or not in contract.

Question 3

Special Damages

Answer 3

Definition:
Arise due to breach of contract, and parties knew it [e.g. loss on other
contracts due to breach of this contract].
Rules:
Allowed only if communicated at time of contract.
Actual Damage allowed.
Remote and indirect losses are not allowed [e.g. loss of future projects
not yet made

Question 4

Common Rules of Damages

Answer 4

1. Aggrieved party cannot claim a loss which could have been avoided reasonably.
2. Court allows reasonable damages or amount specified in the contract, whichever is low

Question 5

calculation of ordinary damages

Answer 5

Damages
For Goods –> Market Price – Contract Price.
For Services –> Reasonable loss

Question 6

calculation of special damages if communicated

Answer 6

Cancellation of Other contracts –> Loss of Profit + Compensation Paid.
Stop of Production –> Loss of Normal Profit
Cancellation of future contracts –no damages

Question 7

money not paid

Answer 7

reasonable interest