Business Law Quiz 8 Study Guide

Business Law Quiz 8 Study Guide - I. Compensatory Damages...

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I. Compensatory Damages a. When one party to a contract breaches the contract by failing to perform his contractual duties, the law provides a remedy for the injured party. Monetary damages may be provided if the losses are foreseeable, definite, and not avoidable. The purpose of compensatory damages is to allow the injured party to recover from out-of-pocket expenses. In all civil lawsuits the plaintiff must prove liability and damages suffered. In some cases, the injured party has the responsibility to mitigate damages to reflect actual damages. II. Consequential Damages a. When one party to a contract breaches the contract by failing to perform his contractual duties, the law provides a remedy for the injured party. Monetary damages may be provided if the losses are foreseeable, definite, and not avoidable. The purpose of consequential damages is to allow the injured party to recover from a loss of wages or profits. The award may be to restore to status quo (reliance), loss of value, or nominal/incidental damages (minimum dollar amount suffered). In all civil lawsuits the plaintiff must prove liability and damages suffered. In some cases, the
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This note was uploaded on 09/18/2011 for the course BSL 212 taught by Professor Guzzi during the Spring '07 term at University of Miami.

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Business Law Quiz 8 Study Guide - I. Compensatory Damages...

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