Chapter 19 Breach and Remedies

Question 1

Compensatory damages

Answer 1

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

Question 2

Incidental damages

Answer 2

Expenses that are caused directly by a breach of contract

Question 3

Standard measure

Answer 3

Value of the breaching party’s promised performance - value of her or his actual performance

Question 4

Consequential damages

Answer 4

Foreseeable damages that result from a party’s breach of contract

Question 5

Special damages

Answer 5

The same as consequential damages

Question 6

Mitigation of damages

Answer 6

When a breach of contract occurs, the innocent injured party is held to a duty to mitigate, or reduce, the damages that he or she has suffered

Question 7

Liquidated damages

Answer 7

Specifies that a certain dollar amount is to be paid in the event of a future default or breach of contract
- usually are enforceable

Question 8

Penalty

Answer 8

Also specifies a certain dollar amount but meant to penalize the breaching party

Question 9

Equitable remedies

Answer 9

When damages aren’t enough for the breach

Question 10

Reformation

Answer 10

When the parties have imperfectly expressed their agreement in writing, courts can rewrite the contract to reflect true intentions

Question 11

Quantum meruit

Answer 11

“as much as he or she deserves”
- mentioned under quasi contract

Question 12

Waiver of breach

Answer 12

Give up the right to sue for a past breach but only pertinent to that specific breach matter

Question 13

Exculpatory clauses

Answer 13

Provisions stating that no damages can be recovered

Question 14

Limitation-of-liability clauses

Answer 14

Provisions that affect the availability of certain remedies