Term
| Types of interests of non-breaching parties: Expectation Interest |
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Definition
| The non-breaching party gets the benefit of the bargain |
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Term
| Types of interests of non-breaching parties:Reliance Interest |
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Definition
| The non-breaching party receives the cost of partial performance or preparation to perform |
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Term
| Types of interests of non-breaching parties:Restitution Interest |
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Definition
| One party receives the value of the benefit conferred on the other party |
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Term
| Six Categories of Money Damages: Compensatory Damages |
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Definition
| Buyer of goods recovers: cover price minus contract price for seller's breach |
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Term
| Six Categories of Money Damages: Compensatory Damages |
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Definition
| Seller of goods recovers: cover price minus fair market value for buyer's breach |
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Term
| Six Categories of Money Damages: Compensatory Damages |
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Definition
| Buyer of services recovers: cover price minus contract price for provider's breach |
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Term
| Six Categories of Money Damages: Compensatory Damages |
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Definition
| Provider of services recovers: lost profit plus cost of partial performance (or contract price if complete performance). |
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Term
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Definition
1. Indirect, unforeseeable damages
2. Lost profits are consequential damages |
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Term
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Definition
1. Cost of finding substitute performance
2. Mitigation of damages -> Non-breaching party is usually required to make reasonable efforts to lessen damages from breach |
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Term
| Six Categories of Money Damages: Punitive (Exemplary) Damages |
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Definition
1. Damages awarded to punish the defendant and to deter others from similar conduct
2. Typically available only for intentional torts |
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Term
| Six Categories of Money Damages: Nominal Damages |
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Definition
1. A small amount of damages given to a party who wins but can show no monetary injury
2. Examples:
- Auto accident where no injury
- Trespass action
- Employment discrimination |
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Term
| Six Categories of Money Damages: Liquidated damages |
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Definition
1. Defined: damages in a fixed amount agreed on by the parties prior to any breach
2. Requirements:
a) Damages difficult to estimate
b) reasonable amount
3. Penalties enforceable |
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Term
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Definition
Monetary damages (common law or "legal" remedy) alone must be inadequate
2. Judge decides this |
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Term
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Definition
1. Required avenue where monetary compensation is sufficient
2. Jury decides this |
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Term
| Types of Equitable Remedies: Rescission and Restitution |
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Definition
1. Cancellation of the contract and restoration of the status quo
2. Right to have a jury trial: jury decides |
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Term
| Types of Equitable Remedies: Specific Performance |
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Definition
1. A court order requiring a party to perform the terms of the contract
2. Only available for unique items
3. Land is always unique |
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Term
| Types of Equitable Remedies:Quasi Contract |
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Definition
1. Elements
a) One party provided a service or benefit to the other party
b) The other party is unjustly enriched if there is no payment for the benefit
2. Application
a) Material breach: either breaching or nonbreaching party may use in appropriate circumstances |
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Term
| Types of Equitable Remedies: Injunction |
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Definition
1. A court order that something be done or stopped
2. Elements of proof:
a) Money damages must be inadequate
b) irreparable injury must result if there is no injunction |
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Term
| Types of Equitable Remedies: Reformation |
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Definition
| An oral agreement is imperfectly reduced to writing, so the agreement is revised to conform to the parties' intent |
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