Chapter 14: Breach and Remedies Flashcards

1
Q

What are the types of Damages?

A

Compensatory
Consequential
Punitive
Nominal

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2
Q

Covers direct losses and costs

A

Compensatory Damges

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3
Q

Damages that compensate the nonbreaching party for the loss of the bargain

A

Compensatory Damages

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4
Q

Only for damages actually sustained and proved to have arisen directly from the loss of the bargain caused by the breach of contract

A

Compensatory Damages

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5
Q

Replaces what was lost

A

Compensatory Damages

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6
Q

Damages that compensate for expenses directly because of a breach of contract

A

Incidental Damages

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7
Q

Usual measurement of the damages of sale of goods is the difference between

A

Contract price and the Market Price

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8
Q

The remedy for sale of land is

A

Specific Performance

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9
Q

The measure of damages of sale of land is the difference between the

A

Contract Price and Market Price

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10
Q

When a contractor breaches the construction contract, the measure of damages is

A

Cost of completion

Reasonable compensation for any delay in performance

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11
Q

When a contractor finishes construction late, the measure of damages is

A

Loss of use

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12
Q

Covers indirect and foreseeable losses

A

Consequential Damages

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13
Q

Special Damages

A

Consequential Damages

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14
Q

Foreseeable damages that result from a party’s breach of contract but are caused by special circumstances beyond the contract itself

A

Consequential Damages

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15
Q

Punishes and deters wrongdoing

A

Punitive Damages

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16
Q

Generally not awarded in an action for breach of contract

A

Punitive Damages

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17
Q

Recognizes wrongdoing when no monetary loss is shown

A

Nominal Damages

18
Q

A small monetary award granted to a plaintiff when no actual damage was suffered

A

Nominal Damages

19
Q

The requirement that a plaintiff do whatever is reasonable to minimize the damages caused by the defendant

A

Mitigation of Damages

20
Q

Required action in mitigation of damages depends on what?

A

The nature of the situation

21
Q

A person whose employment has been wrongfully terminated has a duty to mitigate damages incurred because of the employer’s

A

Breach of the employment contract

22
Q

An amount stipulated in a contract, that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach

A

Liquidated Damages

23
Q

A contract clause that specifies a certain amount to be paid in the event of a default or breach of contract but is unenforceable because it is designed to punish the breaching party rather than provide a reasonable estimate of damages

24
Q

What questions are asked to determine enforceability?

A

At the time the contract was formed, was it apparent that damages would be difficult to estimate in the event of a breach?
Was the amount set as damages a reasonable estimate and not excessive?
(Yes to both = enforced. No to either = unenforced)

25
To undo, or cancel, a contract
Rescission
26
An equitable remedy under which a person is restored to his or her original position prior to loss or injury, or placed in the position he or she would have been had the breach not occurred
Restitution
27
Calls for the performance of the act promised in the contract
Specific Performance
28
An equitable remedy in which a court orders the parties to perform as promised in the contract
Specific Performance
29
Normally granted only when the legal remedy is inadequate
Specific Performance
30
When specific performance is unavailable, what will be awarded instead
Damages
31
An equitable remedy used when the parties have imperfectly expressed their agreement in writing
Reformation
32
Courts order reformation most often when this is present
Fraud or Mutual Mistake
33
When will Reformation be ordered?
Fraud or mutual Mistake Written contract incorrectly states the parties' oral agreement Covenants not to compete are unreasonable
34
A quasi contract is used to prevent what?
Unjust Enrichment
35
What are the requirements of Quasi Contract
Party conferred a benefit on the other party Party conferred the benefit with the reasonable expectation of being paid Party did not act as a volunteer in conferring the benefit Party receiving the benefit would be unjustly enriched if allowed to retain the benefit without paying for it
36
Provisions stating that no damages can be recovered
Exculpatory Clauses
37
Provisions that affect the availability of certain remedies
Limitation of Liability Clauses
38
Limitation of Liability Clauses depends on the type of breach that is
Excused by the provision
39
A provision excluding liability for fraudulent or intentional injury _________ be enforced
Will Not
40
A clause excluding liability for illegal acts or violations of law _______ be enforced
Will Not
41
A clause excluding liability for negligence ______ enforced
May be