Blaw11a - Elements of Law Part One Part III Contract Law Unit 11 Remedies for Breach of Contract © 2007 Captus Press Inc Module 1 The Nature of a

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Unformatted text preview: Elements of Law - Part One Part III Contract Law Unit 11 Remedies for Breach of Contract © 2007 Captus Press Inc. Module 1 The Nature of a Breach of Contract © 2007 Captus Press Inc. © 2007 Captus Press Inc. 1 Elements of Law - Part One Method of breach A party may repudiate a contact by refusing to perform his or her obligations Repudiation may be an express breach in which the party does not perform the obligation or declares that the obligation will not be performed If the repudiation occurs before performance of the obligation is due it is an anticipatory breach Nature of the breach of contract A breach of condition is a breach of an essential term of a contract which denies the injured party of the benefit of the contract or defeats the purpose of the contract A breach of warranty is a breach of a minor term which does not defeat the purpose of the contract A fundamental breach is more extensive and serious than a breach of condition—it is the failure to perform a primary obligation under a contract which deprives the injured party of virtually the whole benefit of the contract © 2007 Captus Press Inc. 2 Elements of Law - Part One Module 2 Remedies for Breach of Contract-Damages © 2007 Captus Press Inc. Damages Liquidated damages Unliquidated damages Consequential damages Expectancy damages Lost opportunity damages © 2007 Captus Press Inc. 3 Elements of Law - Part One Liquidated damages Liquidated damages are damages that can be determined objectively, by applying a simple formula: Creditor owes 2000 as the contract price but has paid only 1000: $2000 – $1000 = $1000 in liquidated damages Consequential damages Consequential damages flow not from the breach but from the consequences of the breach. Examples: damages in expectancy-loss of expected future profits, long term loss of expected business. © 2007 Captus Press Inc. 4 Elements of Law - Part One Duty to mitigate contract damages The injured party cannot sit back and let the damages mount up—steps must be taken to limit the damages. If a buyer refuses to complete the sale, the seller must try to resell. If it sells for less than the original price, the seller’s damages are the difference between the original contract price and the new sale price. If it sells for more than original price, the seller cannot claim damages for the breach, because none have been suffered. Module 3 Special Remedies: Specific Performance, Injunctions, Quantum Meruit © 2007 Captus Press Inc. © 2007 Captus Press Inc. 5 Elements of Law - Part One Specific performance Requires the party in breach to perform contract obligations where subject matter of contract is unique or is real property specific performance is not available for contracts for personal services the remedy of specific performance requires the injured party to have “clean hands” and not to have contributed to the breach a request for remedies must have been made promptly if specific performance is to be granted. Injunctions Injunctions are orders to a party to do, or refrain from doing something they are most likely to be granted where the contract contains a negative covenant mandatory injunctions are also available but not granted often interim injunctions are available but the plaintiff must show that irreparable harm will occur if a temporary injunction is not granted. A condition for granting an interim injunction is a promise to pay damages sustained by the party enjoined, if the plaintiff fails to win at trial. © 2007 Captus Press Inc. 6 Elements of Law - Part One Quantum meruit Quantum meruit is available when the injured party has done some work short of completion, and should be compensated for the value of that work the other party must be shown to have repudiated the agreement. Substantial performance A party who has completed most of the work but repudiated or breached the contract prior to completion, is entitled to the remedy of substantial performance. The remedy will result in the value of the work done being offset against the damages awarded to the plaintiff. © 2007 Captus Press Inc. 7 ...
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This note was uploaded on 01/16/2011 for the course ADMS 2610 taught by Professor Joshuasera during the Spring '10 term at York University.

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