Remedies for Breach of Contract

Question 1

remedies for breach of contract

Answer 1

damages
remedies in equity
alternatives

Question 2

damages are always

Answer 2

money

Question 3

types of money damages

Answer 3

compensatory
special
liquidated
nominal
punitive

Question 4

compensatory money damages

Answer 4

aka general

you have a contract to sell to me a 2003 chevy s-10 for $20000. you breach the contract and i have to buy the truck elsewhere for $21500. compensatory damages are $1500

Question 5

special money damages

Answer 5

aka consequential

includes lost profits if they are foreseeable

Question 6

where did the “foreseeable” come from in money damages

Answer 6

Hadley vs. Baxendale

England
case dealt with miller
developed concept of foreseeability

Question 7

liquidated money damages

Answer 7

(fixed) agreed to by the parties in the contract itself

must be reasonable in relationship to the contract price

plaintiff does not need to prove that he actually sustained the actual dollar amount of the damages agreed to

Question 8

Nominal money damages

Answer 8

i.e. in name alone

plaintiff receives $1 plus court costs, because he cannot show that an actual loss was incurred

Question 9

punitive money damages

Answer 9

ie exemplary
purpose is to punish or make an example of the defendant

punitive damages are rarely allowed
they are usually available for malicious torts, fraud or as otherwise allowed by the statute

Question 10

remedies in equity

Answer 10

reformation
rescission of the contract
specific performance

Question 11

reformation remedies in equity

Answer 11

making an unfair contract fair

Question 12

rescission of the contracts remedies in equity

Answer 12

undo the contract

Question 13

specific performance remedies in equity

Answer 13

an extraordinary remedy and available only where the remedy at law (money damages) is unavailable or inadequate and where the subject matter of the contract is unique

opposite of rescisson

Question 14

alternatives

Answer 14

a party injured by breach of contract is entitled to money damages or rescission, but not both

a party injured by breach of contract is entitled to specific performance or rescission, but not both

a party injured by breach of contract is entitled to specific performance or money damages, but not both

Question 15

specific performance is always available

Answer 15

in contracts for the sale of land, because all land is unique

specific performance is also available in cases where the subject matter of the contract is unique personal property, such as a rare painting or an antique automobile

Question 16

specific performance is not available

Answer 16

in personal service or employment contracts. in such a case however the court may enforce the negative aspect of the contract by injunction

Question 17

a non breaching party is required

Answer 17

to mitigate (lessen) his or her damages

Question 18

punitive damages are not allowed

Answer 18

for ordinary breach of contract alone