an announcement by one of the parties that the contract will not be performed prior to the date that the performance is due
What is the statement called when an anticipatory breach of contract is made?
occurs "before" the date that the performance is to occur, one of the parties states that he isn't going to do what he originally said he would do:
statement must be clear, definite, and unequivocal
what kind of statement does an anticipatory repudiation require?
1. ignore the repudiation and state that you are still expecting performance
2. treat the contract as if it had been cancelled
3. treat the contract as if breached and sue for damages
in event of an anticipatory breach, what can the non-breaching party do?
1. compensatory damages
2. consequential damages
3. nominal damages
4. punitive damages
What 4 types of monetary damages are available in the event of a breach of contract?
damages that compensate you for your actual loss
---damages that flow directly from the breach of contract
damages that do not flow directly from the breach of contract
--damages that happened because of the breach and are reasonably foreseeable
$1 recovery , a trivial sum (usually $1.00) awarded as recognition that a legal injury was sustained (as for technical violations of a contract)
--damages imposed for the purpose of punishing and are in excess of the actual loss
the law places a duty on nonbreaching party to take reasonable efforts to avoid or reduce the resulting damages from a breach of contract. to mitigate a breach of an emplyement contract, the nonbreaching party must only accept "comparable" employment
lessen or reduce damages (mitigate damages)
in the case of mitigation damages it is the duty of the non-breaching party to?
a reduction of the amount that is to be recovered by the non-breaching party
failure to mitigate damages will result in what?
2. specific performance
What are the 4 equitable remedies for breach of contract?
one must also look at restitution if a contract is being recsended
what is the extra step that must be taken in rescission?
before a contract can be resended, we must 1st repay any consideration
why must we look at restitution before a contract can be rescinded?
subject matter is unique...what is an example of subject matter that is always unique?
ask the court to stop the other party from performing (stop what the other party is doing):
ask court to rewrite agreement, or court on its own takes the action to rewrite the agreement:
rewrite (reform) the unconscionable contract, making the contract palatable to all the parties involved
if the contract is unconscionable, what can the court do?
1. damages must be reasonable, the amount cannot punish
2. Actual money damages are difficult to determine (at the time the contract is made)
what are the 2 restrictions to liquidation of damages?
violation of a non-compete agreement is an example of a case that could involve what equitable remedy?