Ch 19 breach of contract and remedies incidental

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Ch 19 Breach of Contract and Remedies Incidental damages , damages that compensate for expenses directly incurred because of a breach of contract, such as those incurred to obtain performance from another source. Consequential damages , special damages that compensate for a loss that is not direct or immediate (for example, lost profits). The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them. Nominal damages , a small monetary award (often one dollar) granted to a plaintiff when no
actual damage was suffered or when the plaintiff is unable to show such loss with sufficient certainty. Mitigation of damages , a rule requiring a plaintiff to have done whatever was reasonable to minimize the damages caused by the defendant. Liquidated damages , an amount, stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach. Penalty , a sum inserted into a contract not as a measure of compensation for its breach but rather as punishment for a default. The agreement as to the amount will not be enforced, and recovery will be limited to actual damages. Restitution , an equitable remedy under which a person is restored to his or her original position prior to loss or injury, or placed in the position he or she would have been in had the breach not occurred. Specific performance , an equitable remedy requiring the breaching party to perform as promised under the contract; usually granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique (for example, real property). Reformation , a court-ordered correction of a written contract so that it reflects the true intentions of the parties. Quantum meruit , a Latin phrase, meaning “as much as he deserves,” that describes the extent of compensation owed under a quasi contract. Waiver , an intentional, knowing relinquishment of a legal right. Ch 20 The Formation of Sales and Lease Contracts Sales contract , a contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price. Sale , the passing of title (evidence of ownership rights) from a seller to a buyer for a price. Tangible property , property that has physical existence and can be distinguished by the senses of touch, sight, and so on. A car is tangible property. Intangible property , property that is incapable of being apprehended by the senses (such as by sight or touch). Intellectual property is an example of intangible property.
Predominant-factor test , a test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.

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