Damages

Question 1

Consequential damages

Answer 1

Reasonably foreseeable losses to a non-breaching party that go beyond expectancy damages such as loss of profits

Question 2

Expectancy damages

Answer 2

Damages that arise naturally and obviously from the breach are normally measured by the market value of the promised performance less the consideration promised by the non-breaching party

Question 3

Foreseeability

Answer 3

Damages are recoverable if they were the natural and probable consequences of breach, or if they were in the contemplation of the parties at the time the contract was made

Question 4

Liquidated damages

Answer 4

A provision for liquidated damages will be enforced if the amount of damages is difficult to estimate at the time the contract was entered into and the amount stipulated in the contract is reasonable in relation to whether the actual damages suffered or the damages that might be anticipated at the time the contract was made

Question 5

Punitive damages

Answer 5

Very rarely available, some statutes apply them for the purpose of punishing fraud, violation of fiduciary duty, acts of bad faith, and for deterrence

Question 6

Nominal damages

Answer 6

Damages do not need to be alleged in a cause of action for a breach, if there are no damages alleged or none are proved, the plaintiff is still entitled to them

Question 7

Mitigating damages

Answer 7

A party to a contract has the obligation of avoiding or mitigating damages to the extent possible by taking such steps as to not involve undue risk, expense, or inconvenience

Question 8

Restitutionary damages

Answer 8

Restore the plaintiff to whatever the benefit was conferred upon the defendant prior to the breach and when it would be unjust for the defendant to retain that benefit

Question 9

Reliance damages

Answer 9

May be recoverable when the non-breaching party incurs expenses in reasonable reliance upon the promise that the other would perform

Question 10

Specific performance

Answer 10

When damages are an inadequate remedy, the non-breaching party may pursue the equitable remedy of specific performance
a) difficulty in proving damages with reasonable certainty
b) difficulty of procuring a suitable substitute performance by means of money awarded as damages
c) likelihood that an award of damages will be collected