LAW 122 Chapter Notes - Chapter 12: Liquidated Damages, Specific Performance
29 Jun 2016
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Document Summary
Damages an award of money that is intended to cure a wrongful event, such as a breach of contract. Reliance damages represent the monetary value of the expenses and opportunities that the plaintiff wasted under a contract. Nominal damages symbolize the fact that the plaintiff suffered a wrong when the defendant broke a promise. Liquidated damages represent a genuine attempt to estimate the value of the loss that may occur as a result of a breach. Penalty requires a party to pay an exorbitant amount if it breaches the contract; it is an attempt to bully a person into performing. The courts do not enforce penalties but they enforce liquidated damages. Punitive damages are intended to punish the defendant and discourage other people from behaving badly. Courts of equity developed other types of remedies. Occurs when the court orders the defendant to fulfill a contractual obligation to do something.
