Remedies Flashcards
Which type of damages put the non-breaching party in the position they would have been had the contract been performed properly?
Expectation damages or loss of bargain damages
How can expectation/loss of bargain contracts be calculated in a construction contract (2 ways)?
- Cost of cure
- Difference in value between what was promised and what was provided
Which type of damages are used when expectation damages would be too speculative?
Reliance damages (aka ‘wasted expenditure’)
Reliance damages compensate the nonbreaching party for expenses ________ in reliance on the contract up to the time of ____.
incurred, breach
Reliance damages aim to put the parties in the position they would have been had they….
never entered into the contract
Which type of damages may be awarded if breach is established but no actual loss is proven?
Nominal damages
Damages for physical injury are recoverable so long as the loss is not too ______ from the breach of contract
remote
Damages for injury to ________ (e.g. mental distress) will not usually be awarded except in ________ contracts where the sole purpose was _________
feelings, consumer, enjoyment
Are punitive damages recoverable in contract?
No - they can be recoverable in tort
When is the amount of damages caused by a breach usually measured?
At the date of the breach
What are the 2 elements of remoteness of damages to be recoverable under contract?
Losses must:
- Arise naturally from the breach, and
- Be in the reasonable contemplation of both parties at the time the contract was made
An ________ event which could reasonably have been expected will not break the chain of ________ for a party who causes a breach which results in loss
intervening, causation
If the breach is one of two causes of the loss, the breaching party is still ______
liable
A nonbreaching party’s ________ _______ may be a defence if the breach involves a duty to take _____
contributory negligence, care
Damages in contracts for sale of goods:
If goods aren’t delivered , the buyer ____ them, or the buyer wrongfully _______ to accept delivery, the starting point is the difference between the ______ price and the _____ price for the goods at the time of the breach
rejects, refuses, contract, market
Innocent parties have a duty to do what to their losses?
Mitigate them
When is there no duty for an innocent party to mitigate their losses?
Where the claim is for a debt owed
For a debt claim, there is also no need to consider which other 2 elements which are considered for breaches of contract?
- Remoteness
- Causation
Give 4 scenarios in which specific performance would not be granted as a remedy
- Undue hardship to breaching party
- No mutuality
- Employment or personal services contracts
- Order requires court supervision
What is the equitable remedy of rescission?
The cancellation of a voidable contract due to the grounds that occurred before or at the time the contract was entered into (e.g. duress or misrepresentation)
Equitable remedies will not be granted if the party seeking the grant unreasonably ______ seeking the remedy to the ______ of the other party (known as ______), or engaged in ___________ behaviour with respect to the contract in question (______ hands)
delayed, detriment, laches, unconscionable, unclean
If a party will be unjustly enriched because a contract failed, what might be sought to prevent this enrichment?
Restitution
For restitution to apply, the innocent party must have a _______ _______ in preventing the unjust enrichment
legitimate interest
Which monetary award is given if restitution is required in relation to services?
Quantum meruit
