Method a court uses to compensate an injured party. Focus is how to help the injured party w/o unfairly harming the other person.
Types of Remedies
4.Liquidated damages clause
Money required to put one party in the position she would have been in had the other side performed the contract
What assets are included in specific performance
1.rare works of art
5.shares in closely held corp.
Liquidation damages clause
Condition in contract that declares in advance what one party will receive if other breaches.
What are the 4 principal contract interests a court may seek
Puts the injured party in the position she would have been in had both sides fully performed
What are the 3 components of Expectation interest
1. Compensatory damages
2. Consequential damages
3. Incidental damages
flow directly from the contract as a result of breach. injured party must prove with reasonable certainty that breach caused damages.
result from the unique circumstances of the particular injured party. Injured may recover only if breaching party should have foreseen them
Puts the injured party in the position he would have been in had the parties never entered into a contract. focuses on the time and money that the injured spent performing his part of agreement. If there is no valid contract court may reward reliance damages under promissory damages.
returns to the injured party a benefit that he has conferred on the other party, which it would be unjust to leave with that person.
What are the remedies under Equitable Interest
1.Specific performance-court orders parties to perform
2.Injunction-court order requiring someone to do or refrain from doing something
3.Reformation-court will partially re-write a contract if thinks written agreement has simple mistake or to save it
What are special issues of damages
Liquidation damage clause
Punitive damages clause
designed not to compensate the injured party but to punish the breaching party