0324655223_128656_2 - TYPES OF MONETARY DAMAGES A breach of...

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Ch. 18: Contracts: Breach of Contract and Remedies - No. 1 Clarkson et al.’s Business Law (11th ed.) TYPES OF MONETARY DAMAGES A breach of contract entitles the non-breaching party to sue for money damages , including: Compensatory Damages: Damages that compensate the non-breaching party for the injuries or losses actually sustained as a result of the breach. Incidental Damages: Expenses or costs that are caused by the breach of contract, such as the costs incurred in obtaining performance from another source. Consequential Damages: Damages resulting indirectly from the breach, which were reasonably foreseeable to the breaching party at the time the breach occurred. Punitive Damages: Damages designed to punish a wrongdoer and to deter similar conduct in the future. Such damages are generally not recoverable in breach of contract actions, unless the breaching party’s actions give rise to a separate tort claim. Nominal Damages: Damages awarded to the non-breaching party when only a “technical” injury occurred resulting in no actual damages.
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Clarkson et al.’s Business Law (11th ed.) COMPENSATORY DAMAGES Although there are special formulae for certain types of contracts, compensatory damages are generally calculated as follows: The value of the performance as promised The value of the performance actually rendered The value of any loss avoided, or mitigated , by the non-breaching party + Incidental damages to the non-breaching party _______________________________________________ = Compensatory damages . “Market Value” Damages: In cases involving contracts for the sale of goods or, in most states, land, compensatory damages generally equal the difference between the contract price of the goods or land and the fair market price at the time the goods or title to the land was to be delivered.
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This note was uploaded on 02/15/2012 for the course ACCT 2402 taught by Professor Lewis during the Spring '10 term at Lone Star College System.

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0324655223_128656_2 - TYPES OF MONETARY DAMAGES A breach of...

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