Professional Documents
Culture Documents
Remedies
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Remedies
Money damages
Specific performance
Injunction
Reformation
Money Damages
Usually:
Expectation damages
or
Reliance damages
or
Restitution damages
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Expectation Damages
What the injured party reasonably
thought he would get from the
contract.
The goal is to put him
in the position he would have
been in if both parties had fully
performed their obligations.
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Expectation Damages
are the sum of:
Compensatory damages, if any, and
Compensatory Damages
Are the most common monetary awards for
the expectation interest.
Compensatory Damages
Example
Example: Actress breaches her contract with
film company.
Compensatory Damages:
Incremental cost of new actress $1 million
Extra wages for crew
+ $2.5 million
Total
$3.5 million
Consequential Damages
Those resulting from the unique
circumstances of this injured party
Hadley v. Baxendale
Summary of facts
Whats the issue?
How did the court rule
and why?
Discussion
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Summary of facts
Two votes
Discussion
Incidental damages
Relatively minor costs
the injured party incurs
when there has been a breach.
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Reliance Damages
Money expended by the injured party in
reliance on the agreement
for which in fairness he should receive
compensation.
The goal is to return the injured
party to the state he was in before he
entered into the contract with the
breaching party.
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Promissory Estoppel
Reliance damages are typically given in
promissory estoppel cases.
Restitution Damages
Designed to return to the injured party a
benefit that he has conferred on the other
party, which it would be unjust to leave
with that person.
Mitigation of Damages
Duty to mitigate by the non-breaching party:
Must make reasonable efforts to keep
damages as low as possible (to prevent
unnecessary loss)
May not recover damages
that could have been avoided
with reasonable efforts.
Nominal Damages
Liquidated Damages
A court will generally enforce a liquidated
damages clause if:
Punitive Damages
Only awarded in contract case when
it involves conduct such as bad
faith or fraud.
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Specific Performance
A form of mandatory injunction in which a party
is ordered to perform as specified in the
contract.
Injunction
In contract law, an injunction is an order to
cease and/or desist from doing something.
Injunction
A preliminary injunction: A court
order issued early in a lawsuit
prohibiting a party from doing
something during the lawsuit.
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Reformation
A remedy in which the court
rewrites a contract to reflect the
original intention of the parties.
Reformation is rare.
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