BUS311_chapter_06

Since the basic purpose of contract law is to

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Unformatted text preview: ve remedies, such as asking for specific performance and compensatory damages in the alternative, or he may have to make a final binding selection as to which of several available remedies to ask for at the time of starting the lawsuit. Since the basic purpose of contract law is to compensate aggrieved parties for losses suffered as a result of breaches of contract, punitive damages are generally not available in contract actions. For the same reason, courts will not grant more than one remedy when a single remedy will suffice to put the aggrieved party in the same condition she would have been in had there not been a breach of contract. If both specific performance and compensatory damages are available, as in the case of a breach of a contract for the sale of real estate, a court will award either specific performance or compensatory damages, but not both. 6.4 Chapter Summary O nce the parties have made a contract, any number of things can happen that may have a legal effect. Sometimes third parties may have already been granted rights on the contract, as is the case with intended third-party beneficiaries. If the rights are acquired after the contract is made, there would be an assignment situation. If duties have been passed off to a third party, there is a delegation. The rules involving these transactions are often difficult to sort through, and it is helpful to diagram the situation, label all the parties, and then consider the issue in terms of the appropriate terminology. Are we looking at whether an assignor is liable for breach of contract? Whether the contract may be delegated? Framing the issue in the right terms is crucial to resolving such problems, whether on a test or in real life. rog80328_06_c06_111-133.indd 127 10/26/12 5:37 PM CHAPTER 6 Section 6.4 Chapter Summary Contracts may also contain conditions that under some circumstances will lead to a discharge. In certain situations, such as buying a house, such conditions involving financing or the sale of the current residence of a buyer have become standa...
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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.

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