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25 terms

LWC1 chap 18

STUDY
PLAY
Breach
When someone fails to perform a duty w/o a valid excuse
Remedy
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
1.Injunction
2.Expectation damages
3.Specific performance
4.Liquidated damages clause
Injunction
An order forcing someone to do something or refrain from doing something
Expectation damages
Money required to put one party in the position she would have been in had the other side performed the contract
Specific performance
Used in cases of rare property. Forces both parties to complete the deal.
What assets are included in specific performance
1.rare works of art
2.Real Estate
3.secret formulas
4.patents
5.shares in closely held corp.
Liquidation damages clause
Condition in contract that declares in advance what one party will receive if other breaches.
Interest
Legal right in something such as a contract
What is the 1st step a court takes in choosing a remedy?
Identify the interest it is protecting
What are the 4 principal contract interests a court may seek
1.Expectation interest
2.Reliance Interest
3.Restitution Interest
4.Equitable Interest
Expectation Interest
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
Compensatory damages
flow directly from the contract as a result of breach. injured party must prove with reasonable certainty that breach caused damages.
Consequential damages
result from the unique circumstances of the particular injured party. Injured may recover only if breaching party should have foreseen them
Incidental damages
minor costs an injured party incurs responding to a breach.
Reliance Interest
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.
Restitution Interest
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.
Equitable Interest
results when the money is not enough to help the injured.
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
Mitigation
Nominal damages
Liquidation damage clause
Punitive damages
Mitigation
May not recover for damages he could have avoided with reasonable efforts
Nominal damages
a token sum, such as a $1, given to an injured plaintiff who cannot prove damages
Punitive damages clause
designed not to compensate the injured party but to punish the breaching party
3 guideposts courts must consider in granting punitive damages
1.reprehensibility of conduct
2.ratio between harm suffered and award
3.difference between punitive award and civil penalties used in similar cases