Compensatory Damages Flashcards
What are the four types of compensatory damages?
- Expectation damages
- Reliance Damages
- Consequential damages
- Incidental damages (only allowed in contracts for sales of goods)
Expectation damages ?
Damages that will put the plaintiff in the position as if the defendant had performed the contract
Reliance damages
Damages awarded to plaintiff for his cost of performance
Note: these are damages incurred after the contract is formed, but before the breach
Consequential damages
Damages of losses resulting from the breach any reasonable person would foresee would occur at the time the contract was entered.
(Note: these are damages that flow from after the breach)
What are the 4 Requirements for obtaining compensatory damages?
(FUCC)
This where most of the points come from in the essay writing
- Foreseeable
- Unavoidable
- Certain
- Casual
Foreseeable requirement definition
Damages incurred must have been foreseeable to the defendant the contract was formed .
Basically proximate cause in the essay when I write it.
General damages and special damages when the defendant had special notice
Unavoidable requirement definition.
The law will not allow for recovery for any loses that could have reasonably been avoided
Certain requirement mean?
The damages must be certain and not speculative
Casual requirement
To establish causation the plaintiff must that the loss was caused by the breach of contract
When are liquidated damages upheld ?
- If upon breach damages would be difficult to ascertain , and
- The stipulated amount is reasonable forecast of what damages would be
What is a plaintiffs duty to mitigate (include this also with the four requirements)
Must take reasonable care in avoiding, preventing, or halting the escalation of damages
