LAW 122 Chapter Notes - Chapter 12: Disclose, Fundamental Breach, Expectation Damages
LAW – Chapter 12 – Contractual Remedies
Damages – an award of money that is intended to cure a wrongful event such as a breach of
contract
Expectation damages – represent the monetary value of the benefit that the plaintiff
expected to receive under the contract
oForward looking because they are intended to place the plaintiff in the position
that expected to be in after the contract was properly preformed
oExpectation damages = expected benefits under the contract – costs of the
contract
oIssues in calculating expectation damages
Difficulty of calculation
Cost of cure or loss of value
Alternative performance
Intangible losses and emotional distress
Intangible loss – a loss that doesn’t have any apparent economic
value
Remoteness
A loss is remote is it would be unfair to hold the defendant legally
responsible for it
A loss is not remote is the defendant actually knew about the risk
of loss or defendant should have known of risk of loss
Mitigation of damages
Mitigation – occurs when the plaintiff takes steps to minimize the
losses following from the defendant’s breach
Reliance damages – represent the monetary value of the expenses and opportunities
that the plaintiff wasted under a contract
oLook backward in an attempt to undo the effects of a contract
Account of Profits
oComplain about the defendants gain, unfair to allow a party to profit from their
wrongdoing
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
oPenalty – requires a part to pay an exorbitant amount if they breach the contract
Punitive damages – are intended to punish the defendant and discourage other people
from behaving badly
Equitable relief
Specific performance – occurs when the court orders the defendant to fulfil a
contractual obligation to do something
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Damages an award of money that is intended to cure a wrongful event such as a breach of contract. Cost of cure or loss of value. Intangible loss a loss that doesn"t have any apparent economic value. A loss is remote is it would be unfair to hold the defendant legally responsible for it. A loss is not remote is the defendant actually knew about the risk of loss or defendant should have known of risk of loss. Mitigation occurs when the plaintiff takes steps to minimize the losses following from the defendant"s breach. Reliance damages represent the monetary value of the expenses and opportunities that the plaintiff wasted under a contract: look backward in an attempt to undo the effects of a contract. Account of profits: complain about the defendants gain, unfair to allow a party to profit from their wrongdoing. Nominal damages symbolize the fact that the plaintiff suffered a wrong when the defendant broke a promise.
