Legal Remedies (damages)
An injured parties ability to recover damages in a contract action is limited by three principles
Legal Remedies (damages) three principles
A party can recover damages only for those losses that they can prove with reasonable certainty. losses that are purely speculative recoverable
A breaching party is responsible for paying only those losses that were foreseeable to him at the time of contracting.
Plaintiff injured by a breach of contract have the duty to mitigate (avoid or minimize) damages.
A person who has been injured by a breach of contract is entitled to recover compensatory damages
Normally, compensatory damages include 1 or more of three possible items:
1)Loss in value
2)Allowable consequential damages
3)Any allowable incidentals
Loss in Value
The starting point in calculating compensatory damages is to determine the loss in value of the performance that the plaintiff had the right to expect.
Consequential Damages (Also Called Special Damages)
compensate for losses that occur as a consequence of contract.
compensate for reasonable cost that injured part incurs the breach in an effort to avoid further loss.
The normal measure of compensatory damage is not appropriate in every case.
When it is not appropriate, a court may use an alternative measure of damages.
very small damages awards that are given when a technical breach of contract has occurred without causing any actual or provable economic loss.
The parties to a contract may expressly provide their contracts that a specific sum shall be recoverable if a contract is breached.
awarded in addition to the compensatory remedy that are designed to punish a defendant for particularly reprehensible behavior and to deter the defendant and others from commenting similar damages.
In exceptional cases in which money damages alone are not adequate to fully compensate for a party's injuries, a court may grant an Equitable Remedy either alone or in combination with a legal remedy.
is an equitable remedy whereby the court orders the breaching party to perform his contractual duties as promised.