MGSC30H3 Lecture Notes - Lecture 5: Punitive Damages, Contributory Negligence, Damages
Document Summary
Privity: when two people enter into a contract, they create a special relationship for themselves. Consequently, as we will see in chapter 8, the doctrine of privity states that the only people who can sue, or be sued, on a contract are the parties themselves. Contract in which insurance company agrees, in exchange for a price, to pay damages on behalf of a person who incurs liability. Duty to defend: requires insurance company to pay expenses that are associated with lawsuits brought against insured party. Compensatory function: aims to fully compensate people who are wrongfully injured. Deterrence function: discourages people from committing torts by threatening to hold them liable for the losses they cause. Punitive damages: intended to punish defendant if they have done something outrageous. Nominal damages: symbolically recognize that the defendant committed a tort even though the plaintiff did not suffer any loss. Injunction: court order that requires defendant to do something or refrain from doing something.
