Chapter 18 Flashcards
Injunction
A court order that requires someone to do something or refrain from doing something
Expectation damages
The money required to put one party in the position she would have been in had the other side performed the contract
Specific Performance
Forces both parties to complete the deal
Liquidated damages clause
A provision in the contract that declares in advance what one party will receive if the the other side breaches
Interest
A legal right in something
Expectation interest
This refers to what the injure party reasonably thought she would get from the contract
Reliance interest
The injured party may be unable to demonstrate expectation damages, perhaps because it is unclear he would have profited
Restitution interest
The injured party may be unable to show an expectation interest or reliance. But perhaps she has conferred a benefit on the other party
Equitable interest
Something more is needed, such as an order to transfer property to the injured party or an order forcing on party to stop doing something
Direct Damages
Are those that flow directly from the contract
Consequential damages
Are those resulting from the unique circumstances of this injured party.
The rule from Hadley v. Baxendale
The injured party may recover consequential damages only if the breaching party should have foreseen them when the two sides formed the contract
Incidental damages
Relatively minor costs that the injured part suffers when responding to the breach
Sellers remedies
The difference between the original contract price and the price she was able to obtain in the open market
Cover
To make a good faith purchase of goods similar to those in the contract
Reliance interest
Puts the injured party in the position he would have been in had the parties never entered into a contract.
Restitution interest
Is designed to return to the injured party a benefit he has conferred on the other party
Rescission
To undo a contract and put the parties where the were before they made the agreement
Specific performance
A court will award specific performance, ordering the parties to perform the contract only in cases involving the sale of land or some other assets that is considered unique
Injunction
A court order that requires someone to refrain from doing something
Preliminary injunction
An order issued early in a lawsuit prohibiting a party from doing something during the course of the lawsuit
Permanent injunction
If after trial it appears that the plaintiff has been injured and is entitled to an injunction.
Reformation
A process in which a court will partially rewrite a contract
Mitigate
To keep damages as low as reasonable
Nominal damages
A token sum, such as one dollar, given to a plaintiff who demonstrates a breach but no serious injury
Liquidated damages
A clause stating in advance how much a party must pay if it breaches
Remedy
A method a court uses to compensate an injured party.
