EssentialsOFBusLaw_chapter17 Flashcards
Compensatory damages
Damages that flow directly from the contract.
Consequential damages
Foreseeable losses that are not directly related to the subject matter of a contract.
Cover
To make a good faith purchase of goods similar to those in the contract.
Expectation damages
The money required to put one party in the position she would have been in had the other side performed the contract.
Incidental damages
Relatively minor costs that the injured party suffers when responding to the breach.
Injunction
A court order that requires someone to do something or refrain from doing something.
Interest
A legal right in something.
Liquidated damages clause
A provision in a contract that declares in advance what one party will receive if the other side breaches.
Mitigate
To keep damages as low as is reasonably possible.
Nominal damages
A token sum, such as one dollar, given to a plaintiff who demonstrates a breach but no serious injury.
Reformation
A process in which a court will partially rewrite a contract.
Reliance interest
Puts the injured party in the position he would have been in had the parties never entered into a contract.
Rescission
To “undo” a contract and put the parties where they were before they made the agreement.
Restitution interest
Is designed to return to the injured party a benefit he has conferred on the other party.
Specific performance
Forces both parties to complete the deal.
