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4 Written questions

4 Multiple choice questions

  1. compensate for losses that occur as a consequence of contract.
  2. 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.
  3. 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
  4. 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.

4 True/False questions

  1. Nominal Damagesvery small damages awards that are given when a technical breach of contract has occurred without causing any actual or provable economic loss.


  2. Liquidated Damagescompensate for reasonable cost that injured part incurs the breach in an effort to avoid further loss.


  3. Legal Remedies (damages) three principlesA 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.


  4. Loss in ValueThe starting point in calculating compensatory damages is to determine the loss in value of the performance that the plaintiff had the right to expect.