Chapter 14 Breach and Remedies - TYPES OF MONETARY DAMAGES...

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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. Ch. 14: Contracts: Breach and Remedies - No. 1 Business Law Today: Standard Edition (9th ed.)
Nominal Damages: Damages awarded to the non- breaching party when only a “technical” injury occurred resulting in no actual damages. Ch. 14: Contracts: Breach and Remedies - No. 2 Business Law Today: Standard Edition (9th 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

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