Remedies: Monetary

Question 1

Remedies Overview

Answer 1

• Two major types of damages:
  1. Money Damages
  2. Equitable Remedies (aka non-monetary relief)
• Remedies must be foreseeable, can’t be too bizarre (cross-reference with prior foreseeable notes)
• Remedies must be established with reasonable certainty (can’t be speculative)
• Generally, money damages are presumed sufficient

Question 2

Compensatory Damages

Answer 2

1. a type of money damages
2. designed to place the non-breaching party in the position the non-breaching party would have been in, had there been no breach

Question 3

Types of Money Damages

Answer 3

• compensatory (expectation/direct)
• consequential or special
• Incidental
• Nominal
• Punitive or Exemplary
• Liquidated

Question 4

Incidental Damages

Answer 4

1. a type of money damage
2. applies to damages related to the breach, but not the primary damages

Question 5

Nominal Damages

Answer 5

1. a type of money damage
2. applies when the non-breaching party cannot show a financial loss from the breach
3. in such cases, a small sum, usually $1, will be awarded to the non-breaching party

Question 6

Punitive or Exemplary

Answer 6

1. a type of money damage
2. applies when the breaching party’s breach is malicious, willful, reckless
3. purposes are to punish the breaching party and to deter this type of conduct
4. general rule: punitive damages are not available for breach of contract, unless the breach is also a tort which occurs as part of the breach

Question 7

Liquidated Damages

Answer 7

1. a type of money damage
2. applies when damages are difficult to determine
3. applies when the parties agree in advance in a contract provision what the amount of damages will be in the event of a breach
4. the estimate of damages must amount to a reasonable forecast of the actual damages