Ch.19 Worksheets - Chapter 19 Worksheets Worksheet –...

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Chapter 19 Worksheets Worksheet – Conditions 1. When one party breaches a contract, the nonbreaching party can choose one or more of several remedies. A remedy is the relief provided by the innocent party when the other party has breached the contract. Today, the remedy at law for breach of contract is normally monetary damages. Usually a court will not award an equitable remedy unless the remedy at law is inadequate . 2. Nominal Damages: when no actual damage or financial loss results from a breach of contract and only a technical injury is involved the court may award nominal damages to the innocent party. these damages could even be one dollar - nominal damages are only to establish that the defendant acted wrongfully Consequential Damages: Special damages that compensate for a loss that is not direct or immediate (for example, lost profits). The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them. Compensatory Damages : A money award equivalent to the actual value of injuries or damages sustained by the aggrieved party. Incidental Damages: Expenses that are caused directly by a breach of contract, such as those incurred to obtain performance from another source. 3. Compensatory damages replace what was lost because of what the breaching party did and for this reason are often said to "make the person whole." TRUE 4. Kipp agrees to sell Lucio 500 copies of a book for $3.50 each. Kipp does not deliver the books. At the time of the breach, the books are available at $4.50 each. Lucio's damages are $500 5. Compensatory damages are reduced by any loss that the nonbreaching party has avoided. TRUE 6. Suppose that a buyer breaches a contract for the sale of goods that have not yet been produced. In such a situation, expenses incurred to obtain performance from another source are known as incidental damages. Leslie contracts with Remodel, Inc., to redo her living room, but she changes her mind and breaches the contract before Remodel can begin work. As a remedy for the breach, Remodel can seek: expected profits from the contract. In a majority of states, when a seller of a parcel of land breaches the contract and has sold the real property to someone else, the measure of consequential damages is: the difference between the contract price and the market price of the land. 7. Party of Breach Time of Breach Measurement of Damages Owner Before construction has begun. Profits (contract price less cost of materials & labor) Owner During construction Profits plus costs incurred up to time of breach Owner After construction completed Full contract price, plus interest Contractor Before construction has begun Cost in
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