Chapter 7 - Remedies for Breach of Contract (Part 2) Flashcards
What is Quantum Meruit?
In certain situations, it is more appropriate for the injured party to recover compensation from the defaulting party on a quantum meruit basis, rather than on a contractual basis.
*Additional - Quantum Meruit means “As much as he deserved or as much as he earned”
Does not Always arise out of a contract and discharge
(voluntary performance/performance prevented)
What are some examples of Quantum Meruit? And how much will be paid?
1) Work has been done under a contract which does not specify the price (reasonable sum)
2) Contract was repudiated after some work had been done by one party under a contract
3) Contract discovered to be void after some work was done by one party and accepted by the other party
4) Part Performance (not amounting to substantial performance) by one party which was voluntarily accepted by the other party.
5) Valuable benefit received under a frustrated contract.
In each of the above cases, the party who has performed is entitled to be paid a reasonable price. What is reasonable would depend on the facts of each case.
When is non-monetary remedy given?
Specific performance and injunction are equitable remedies given where monetary compensation in the form of damages may not be an adequate remedy.
What is specific performance under non-monetary remedy?
Specific performance is a court order commanding a person to perform his obligations.
When is specific performance under non-monetary remedy given/granted ? What are some condition?
It is an equitable remedy and is available only when it is fair and reasonable to make such an order and at the discretion of the court.
An order for specific performance is given to enforce a positive obligation owed to the plaintiff. It will only be granted if the court decides that damages are an inadequate (ineffective) or inappropriate remedy.
Specific performance is only granted if the contract involves land (because land is unique), antiques or vintage cars etc. which are unique or unusual and not easily replaceable. In other words, no amount of monetary compensation would enable the buyer to obtain an identical item.
If goods are easily replaceable, then damages would be an adequate remedy.
What are some situations where an order for specific performance would not be granted.
In the following situations where
1) Damages are adequate (effective remedy)
2) Contract breached involves personal services
3) Performance of the contract would require constant supervision of the court
What is injunction?
Court order restraining a person from breaching a negative covenant in his contract.
A injunction is to restrain a defendant from breaching a negative obligation (covenant not to do smth) E.g. Restraint of trade, confidentiality clause cases)
When is injunction under non-monetary remedy given/granted ?
It is an equitable remedy and is available only when it is fair and reasonable to make such an order and at the discretion of the court.
