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Unformatted text preview: of a contract MONEY REMEDIES Compensatory Damages direct losses and costs Punitive Damages punish and deter Consequential Damages special damages that compensate for a loss that is not direct or immediate (for example, lost profits or damage to reputation) Liquidated damages An amount, stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach. NONFINANCIAL REMEDIES Restitution deed transferred to wrong party, return of security deposit Specific performance usually granted only when money damages would be an inadequate remedy the subject matter of the contract is unique (for example, real property rare objects, unique service) EXAMPLE Example: Jane offers to clean your house for the month in exchange for $500. You cancel the contract. For the same month, Jane finds another employer for $250. Compensatory $250 Punitive probably not Consequential damage to reputation? Loss of other business? Foreseeable? Mitigation of Damages A rule requiring a plaintiff to have done whatever was reasonable to minimize the damages caused by the defendant. Reduce damages by amount could have been received by plaintiff Examples: new similar job, new acceptable tenant...
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This note was uploaded on 04/17/2008 for the course ACCT 2701 taught by Professor L.phillips during the Winter '08 term at CSU East Bay.
- Winter '08