Textbook Notes (368,317)
Canada (161,798)
LAW 122 (625)
Stan Benda (71)
Chapter 12

Chapter 12 - Contractual Remedies.doc

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Law and Business
LAW 122
Stan Benda

Chapter 12 Contractual RemediesOne or more remedies may be available if a contract is breached Refer to Figure 121 pg 258DAMAGESIn the vast majority of cases the remedy for a breach of contract is damagesoDamagesis an award of money that is intended to cure a wrongful event such as a breach of contractThe nature of the remedy needs to be stressed Expect in rare cases the plaintiff is not entitled to receive the exact thing that it expected to get under the agreementOnly entitled to monetary value of that thingEg if I agree to sell my car to you but later break my promise after you have paid the price you are probably not entitled to get the car itself but are entitled to the monetary value of that carThere are several reasons why courts usually award only monetary damages for a breach of contractiThe courts of law historically did not have the power to force a defendant to do anything other than pay moneyiiContracts traditionally were seen as commercial profitable arrangements bt business peopleTodayis the only thing that matters in the business worldiiiEspecially in the business world it would often be inconvenient to award something other than monetary damages ex on pg 276Expectation DamagesThere are many different measures of relief or ways in which the courts can calculate the amount of money that the plaintiff is entitled to recover from the defendantThe most common measure of relief in contract law is expectation damagesoExpectation Damagesrepresent the monetary value of the benefit that the plaintiff expected to receive under the contractAre forwardlooking bc they are intended to place the plaintiff in the position that they expected to be in after the contract was properly performedConsider the difference bt compensatory damages which are backwardlooking chpt3 and expectation damagesBackwardlooking damages are easily justified They allow the plaintiff to recover the value of something Eg favourable reputation or a broken leg that it previously enjoyed but lost as a result of the defendants wrongful act Forwardlooking damages go furtherallows the plaintiff to recover the value of something that is never previously enjoyed but merely expected to receive under the contract with the defendant Expectation damages therefore provide an assurance that if a promise is not actually fulfilled the innocent party will at least be able to recover the monetary value of the promiseRefer to Figure 122 Calculations of Expectation Damages pg 276Eg suppose you agree to pay 5000 for a computer that is really worth 7000 You expect to make a profit of 2000 However if the vendor breaches the contract by refusing to deliver the computer and if you have not yet paid the price you are entitled to receive the 2000 And if you paid the entire price 5000 before the breach you will be entitled to 7000 cash In either event you are entitled to enjoy the 2000 profit1 of 7
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