Chapter 18

Question 1

Injunction

Answer 1

A court order that requires someone to do something or refrain from doing something

Question 2

Expectation damages

Answer 2

The money required to put one party in the position she would have been in had the other side performed the contract

Question 3

Specific Performance

Answer 3

Forces both parties to complete the deal

Question 4

Liquidated damages clause

Answer 4

A provision in the contract that declares in advance what one party will receive if the the other side breaches

Question 5

Interest

Answer 5

A legal right in something

Question 6

Expectation interest

Answer 6

This refers to what the injure party reasonably thought she would get from the contract

Question 7

Reliance interest

Answer 7

The injured party may be unable to demonstrate expectation damages, perhaps because it is unclear he would have profited

Question 8

Restitution interest

Answer 8

The injured party may be unable to show an expectation interest or reliance. But perhaps she has conferred a benefit on the other party

Question 9

Equitable interest

Answer 9

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

Question 10

Direct Damages

Answer 10

Are those that flow directly from the contract

Question 11

Consequential damages

Answer 11

Are those resulting from the unique circumstances of this injured party.

Question 12

The rule from Hadley v. Baxendale

Answer 12

The injured party may recover consequential damages only if the breaching party should have foreseen them when the two sides formed the contract

Question 13

Incidental damages

Answer 13

Relatively minor costs that the injured part suffers when responding to the breach

Question 14

Sellers remedies

Answer 14

The difference between the original contract price and the price she was able to obtain in the open market

Question 15

Cover

Answer 15

To make a good faith purchase of goods similar to those in the contract

Question 16

Reliance interest

Answer 16

Puts the injured party in the position he would have been in had the parties never entered into a contract.

Question 17

Restitution interest

Answer 17

Is designed to return to the injured party a benefit he has conferred on the other party

Question 18

Rescission

Answer 18

To undo a contract and put the parties where the were before they made the agreement

Question 19

Specific performance

Answer 19

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

Question 20

Injunction

Answer 20

A court order that requires someone to refrain from doing something

Question 21

Preliminary injunction

Answer 21

An order issued early in a lawsuit prohibiting a party from doing something during the course of the lawsuit

Question 22

Permanent injunction

Answer 22

If after trial it appears that the plaintiff has been injured and is entitled to an injunction.

Question 23

Reformation

Answer 23

A process in which a court will partially rewrite a contract

Question 24

Mitigate

Answer 24

To keep damages as low as reasonable

Question 25

Nominal damages

Answer 25

A token sum, such as one dollar, given to a plaintiff who demonstrates a breach but no serious injury

Question 26

Liquidated damages

Answer 26

A clause stating in advance how much a party must pay if it breaches

Question 27

Remedy

Answer 27

A method a court uses to compensate an injured party.