Chapter_18_Notes_(Damages)

Chapter_18_Notes_(Damages) - 2 Must be proven with...

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DAMAGES (CHAPTER 18) I) Monetary Damages (“Legal” Remedies) A) Compensatory Damages – awarded to compensate the plaintiff with the benefit of their bargain 1) Loss of Value – difference between the contract price and the market value 2) Incidental Damages – difference between the contract price and the price of the substitute goods/services 3) Consequential Damages – caused by breach but arise from circumstances outside of the contract (a) To recover, they must be foreseeable – the breaching party either knew or had reason to know if the breached the other party would suffer consequential damages B) Reliance Damages – compensate you for the damages you incurred in preparation for the contract 1) Must be foreseeable C) Nominal Damages – damages in name only; you win, but barely any money D) Punitive Damages – awarded for the sole purpose of punishing the defendant for bad behavior and to deter future similar actions E) Limitations on the Award of Monetary Damages 1) Must be foreseeable AND 2) Must be proven with reasonable certainty
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Unformatted text preview: 2) Must be proven with reasonable certainty AND 3) Duty to mitigate (minimize or avoid) losses F) Liquidated Damages – must be included as a clause in a contract. “In the event the contract is breached, the breaching party will pay a specific amount of money.” 1) Must be “reasonably related” to what non-breaching party’s economic loss might be (a) If the agreed upon value is too high, the whole clause will be removed II) Equitable Remedies (When one party can’t be satisfied by any amount of money) A) Specific Performance – the court orders the breaching party to perform what was agreed upon by the contract 1) Real Estate – Seller (a) If the seller refuses to sell, the court will force the sale; if it is already sold, you will receive money 2) Goods – seller (a) The goods must be totally unique. (b) If the seller refuses to sell, the court will force the sale 3) NOT Personal Service Contracts B) Injunction – court orders a party not to do something...
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