Contract (Legal Remedies)

Question 1

Compensatory damages

Answer 1

Awarded to protect the plaintiff’s expectation interest. Include both direct and consequential damages *

*consequential damages are those that are foreseeable at the time of contract formation

Question 2

Liquidated damages clause

Answer 2

May limit the damages recoverable. Such provisions are valid provided it’s shown that, at the time of K formation:
1. actual damages would have been difficult to ascertain
2. the amount stipulated was a reasonable forecast of actual harm

Question 3

Nominal damages

Answer 3

Recoverable in contract cases when no actual injury is sustained. Serve to establish or vindicate the plaintiff’s rights

Question 4

Punitive damages

Answer 4

Punitive damages are not available in K cases