Chapter 19 Flashcards
consequential damages
Special damages that compensate for a loss that is not direct or immediate (for example, lost profits). The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them.
liquidated damages
An amount, stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach
incidental damages
Expenses that are caused directly by a breach of contract—such as those incurred to obtain performance from another source
mitigation of damages
A rule requiring a plaintiff to have done whatever was reasonable to minimize the damages caused by the defendant.
nominal damages
A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered or when the plaintiff is unable to show such loss with sufficient certainty.
penalty
A sum inserted into a contract, not as a measure of compensation for its breach but rather as punishment for a default. The agreement as to the amount will not be enforced, and recovery will be limited to actual damages.
reformation
A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
restitution
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 in had the breach not occurred.
specific performance
An equitable remedy requiring the breaching party to perform as promised under the contract; usually granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique (for example, real property).
waiver
An intentional, knowing relinquishment of a legal right.
