This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

Breach of Contract and Remedies Chapter Introduction 18-1 Damages 18-1a Types of Damages 18-1b Mitigation of Damages 18-1c Liquidated Damages Provisions 18-2 Rescission and Restitution 18-2a Restitution 18-2b Restitution Is Not Limited to Rescission Cases 18-3 Specific Performance 18-3a Sale of Land 18-3b Contracts for Personal Services 18-4 Reformation 18-4a When Fraud or Mutual Mistake Is Present 18-4b Oral Contracts and Covenants Not to Compete 18-5 Recovery Based on Quasi Contract 18-5a When Quasi Contracts Are Used 18-5b The Requirements of Quasi Contract 18-6 Election of Remedies 18-6a The Purpose of the Doctrine 18-6b The UCC's Rejection of the Doctrine 18-6c Pleading in the Alternative 18-7 Waiver of Breach 18-7a Consequences of a Waiver of Breach 18-7b Reasons for Waiving a Breach 18-7c Waiver of Breach and Subsequent Breaches 18-8 Contract Provisions Limiting Remedies 18-8a The UCC Allows Sales Contracts to Limit Remedies 18-8b Enforceability of Limitation-of-Liability Clauses Chapter Recap Page 1 of 22 Print Chapter 2010-8-30 http://atext.aplia.com/controller/ChapterPrint.aspx?isbn=0324655223&mod=0&ch=18... Chapter Introduction When one party breaches a contract, the other partythe nonbreaching partycan choose one or more of several remedies. A remedy is the relief provided for an innocent party when the other party has breached the contract. It is the means employed to enforce a right or to redress an injury. The most common remedies available to a nonbreaching party include damages, rescission and restitution, specific performance, and reformation. As discussed in Chapter 1, a distinction is made between remedies at law and remedies in equity . Today, the remedy at law is normally monetary damages, which are discussed in the first part of this chapter. Equitable remedies include rescission and restitution, specific performance, and reformation, all of which will be examined later in the chapter. Usually, a court will not award an equitable remedy unless the remedy at law is inadequate. Special legal doctrines and concepts relating to remedies will be discussed in the final sections of this chapter. Page 2 of 22 Print Chapter 2010-8-30 http://atext.aplia.com/controller/ChapterPrint.aspx?isbn=0324655223&mod=0&ch=18... 18-1 18-1a Damages Ask the Instructor Video: Breach & Remedies: Are attorneys fees recoverable as either compensatory or consequential damages in a breach of contract case? Types of Damages Compensatory Damages A breach of contract entitles the nonbreaching party to sue for monetary damages. As discussed in Chapter 6, damages are designed to compensate a party for harm suffered as a result of another's wrongful act. In the context of contract law, damages compensate the nonbreaching party for the loss of the bargain. Often, courts say that innocent parties are to be placed in the position they would have occupied had the contract been fully performed.... View Full Document

End of Preview

Sign up now to access the rest of the document