Contracts Flashcards
What is the doctrine of substantial performance?
This provides that a party who substantially performs can recover on the contract even though full performance has not been tendered there is no substantial performance of the incomplete performance was a material breach of contract
What is a material breach of contract under common law? And the remedy
Material breach of contract (when the nonbreaching party fails to receive the substantial benefit of its bargain) allows the nonbreaching party to withhold any promise performance and pursue remedies for the breach including damages
When are substantial performance is less likely to be found
When a party intentionally furniture services that are material different than what he promised such a breach is more likely to be treated as material breach for which contract damages are recoverable
What is a divisable or installment contract
Advisable or installment contract is one in which the parties obligations are divisible into distinct units of performance. Recovery is limited to the amount, promised for the unit of the contract performed.
What is restitutionary relief
When a plaintive confers, a measurable benefit on a defendant in the plaintiff, has a reasonable expectation of compensation, it would be unfair to permit the defendant to receive the benefit without compensating the plaintiff
This is usually money damages, equal to the fair value of the benefit minus the other parties damages for breach
What are compensatory damages?
Compensatory damages are meant to compensate the nonbreaching party for actual academic losses
What are expectation damages?
Expectation damages are intended to put the nonbreaching party in the same position, as if the contract had been performed, they must be calculated with reasonable certainty
What are consequential damages?
This is a type of actual damages,
consequential damages are a direct result of the breach, but need not be the usual result of the breaching parties conduct, instead consequential damages, need only be a reasonably foreseeable result of the breach given the party specific circumstances, the breaching party must have reasonably for seeing the consequential damages for them to be recoverable
These do not concern the value of the loss performance due to the breach, but there must be a causal link between the breach and the consequential damages for them to be recoverable. The dollar amount must be proven with reasonable certainty, not speculatively.
When are damages foreseeable?
Damages are for seeable if they are a natural and probable consequence of the breach if they were “in the contemplation of the parties at the time the contract was made” or if they were otherwise foreseeable
What are the types of actual damages?
Direct damages, or consequential damages
Explain failure to mitigate and how it affects recovery
A party to a contract must avoid her mitigate damages to the extent possible by taking steps I do not involve undo risk, expense or inconvenience nonbreaching party is held to a standard, a reasonable conduct in preventing loss
The nonbreaching party’s failure to mitigate does not give the breaching party right to sue. It only reduces the nonbreaching party’s damages recovery.
