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8 Cards in this Set

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  • Back

Lawyer advises client to break contract

(According to the Restatement (Third) of the Law Governing Lawyers •˜ 57(3) (2000), "A lawyer who advises . . . a client to . . . break a contract . . . is not liable to a nonclient for interference with contract." Consider also a lawyer's possible liability to the client.)

Pain and suffering in contracts

We find expressions in the decisions that pain and suffering (or the like) are simply not compensable in actions for breach of contract.

Benefit of the bargain

The promisee is often said to receive "the benefit of the bargain" and the interest that is protected in this way is called the expectation interest. (The promisee's injury consists in being worse off than if the promise had been performed.) Contrast the expectation interest with what the court refers to as the reliance and restitution interests.

Punitive Damages

Although punitive, or exemplary, damages are not traditionally granted for breach of contract, they may be granted for tortious conduct that is sufficiently "outrageous" to justify punishment.

Nominal damages

The plaintiff who proves a breach of contract but fails to prove damages is traditionally awarded nominal damages (six cents or one dollar) "to which," as a distinguished federal judge put it, "for reasons we do not understand every victim of a breach of contract, unlike a tort victim, is entitled." Such an award may serve as a declaration of the plaintiffs rights and may also carry with it an award of court costs.

AAA Standard Arbitration Clause

The American Arbitration Association recommends the following arbitration clause for insertion in all commercial con- tracts: Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.

Attorney's Fees

Because the party that wins a lawsuit is usually not allowed to recover its attorney's fees from the losing party, contracts often provide for recovery by the winning party of its fees. A simple provision for attorney's fees will be sustained as the basis for an award of such fees as may be reasonable.

Aver

to verify or prove to be true in pleading a cause