Damages

Question 1

Compensatory Damages

Answer 1

Compensate the non breaching party for the loss of the bargain. Difference between contract price and price paid

Question 2

Incidental Damages

Answer 2

expenses incurred by a non-breaching party as a result of a contract breach. Awarded in addition to compensatory damages

Question 3

Consequential Damages

Answer 3

Lost profits that were seen at time of the contract

Question 4

Punitive Damages

Answer 4

Awarded to punish or deter future bad conduct. Generally not available for mere breach of contact.

Question 5

Nominal Damages

Answer 5

Only awarded when no other damages are available to the non breaching party because they didn’t suffer any financial loss

Question 6

Mitigation of damages

Answer 6

The duty of the injured party to lessen their losses (eg landlord trying to find a new tenant if the current one leaves)

Question 7

Liquidated Damages

Answer 7

A specific amount agreed upon in a contract to be paid if one party breaches the agreement