Chapter 18 Flashcards
What are the three types of damages
Monetary
Equitable remedies
Restitution
What is restitution
Placing the parties back where they were before the contract
What are compensatory damages
Places the injured party in a position as if they performed the contract
How do you calculate loss of value
Value of promised performance - Value of actual performance = Loss of Value
How do you calculate Compensatory damages
Loss of Value - Loss or cost avoided by injured party \+ Incidental Damages \+ Consequential damages = Compensatory Damages
What are incidental damages
Damages arising directly out of breach of contract
What are cost avoided
Loss or costs the injured party by not having to perform
What are consequential damages
Damages not arising directly from breach but are a foreseeable result of the breach
What are nominal damages
A small sum fixed without regard to the amount of loss
What are liquidated damages
Damages agreed to in advance in the contract
Why are certainty of damages neccesary
Damages must be established with reasonable certainty to be recovered
Why are mitigation of damages necessary
Injured parties cannot recover for losses they could have limited through reasonable effort
Which remedy is requested if there are no other adequate remedies by law
Specific Performance or Injunction
What is specific performance
Court decree ordering breaching party to render promised performance
What is an injuection
Court order prohibiting a party from doing a specific act
