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Unformatted text preview: ving intentional and egregious breaches. The
purpose of punitive damages is to incentivize the defendant and others in a similar position to not act this way in the future, as well as to punish this defendant for the present
Example 6.18. Ralph, famous consumer rights attorney, bought a reserved
seat for a specific flight on Alpha Airlines. Alpha never disclosed that they
were overbooking (selling more seats than were on the flight). When Ralph
checked in for the flight, Alpha said there was no more room on the plane.
Ralph sued, and won. Because Alpha had placed him on another flight
that left only 40 minutes later, he was awarded just $1 in nominal damages,
since he didn’t seem to have suffered economic harm. However, because
the court felt that Alpha was acting fraudulently with this nondisclosure
practice, and because the court felt that Alpha and other airlines needed to
be more honest in their dealings with consumers, Ralph was also awarded
$1 million in punitive damages. Specific Performance
There are instances in which money damages are simply not sufficient compensation in an
action for breach of contract. In such situations, a court has the power to force the breaching party to actually perform the contract as promised. For a party to successfully seek
specific performance as a remedy, she must show that the following circumstances exist:
1. The subject matter of the contract is unique, and a replacement is not readily
2. Money damages would not properly compensate the nonbreaching party for her
Contracts for which courts typically award specific performance include real estate and
contracts involving the sale of art, antiques, and other rare commodities that are unique
or very difficult to replace. No two pieces of real estate are the same, even though they
may be of similar value and location, and the same holds true for artwork, rare coins, rare
stamps, antiques, and similar articles. Personal service contracts, however, are not...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.
- Spring '10
- Business Law