Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
103 Cards in this Set
- Front
- Back
|
elements of a contract
|
The requisites for formation of a legal contract are an offer, an acceptance, competent parties who have the legal capacity to contract, lawful subject matter, mutuality of agreement, consideration, mutuality of obligation, and, if required under the Statute of Frauds, a writing.
|
|
|
mutual assent
|
An essential prerequisite to the formation of a contract is an agreement, consent of the parties to a contract must be: 1. Free; 2. Mutual; and,
3. Communicated by each to the other. (Cal.Civ.Code § 1565) |
|
|
offer
|
promise that, according to its terms, is contingent upon a particular act, forbearance, or promise given in exchange for the original promise or the performance thereof; a demonstration of the willingness of a party to enter into a bargain, made in such a way that another individual is justified in understanding that his or her assent to the bargain is invited and that such assent will conclude the bargain.
|
|
|
acceptance
|
An express act or implication by conduct that manifests assent to the terms of an offer in a manner invited or required by the offer so that a binding contract is formed. The exercise of power conferred by an offer by performance of some act. The act of a person to whom something is offered or tendered by another, whereby the offeree demonstrates through an act invited by the offer an intention of retaining the subject of the offer.
|
|
|
consideration
|
Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances
|
|
|
bilateral contract
|
An agreement formed by an exchange of a promise in which the promise of one party is consideration supporting the promise of the other party
|
|
|
unilateral contract
|
A contract in which only one party makes an express promise, or undertakes a performance without first securing a reciprocal agreement from the other party
|
|
|
adams v lindsell
|
common law contract case regarded as the first case towards the establishment of the "postal rule" for acceptance of an offer. Ordinarily, any form of acceptance must be communicated expressly to an offeror; however, it was found that where a letter of acceptance is posted, an offer is accepted "in course of post".
|
|
|
option
|
A privilege, for which a person has paid money, that grants that person the right to purchase or sell certain commodities or certain specified Securities at any time within an agreed period for a fixed price
|
|
|
firm offer
|
an offer (usually in writing) which states it may not be withdrawn, revoked or amended for a specific period of time. If the offer is accepted without a change during that period, there is a firm, enforceable contract. Gov. UCC
|
|
|
Caldwell v Cline
|
holds that when an offer states that it will be open for a certain number of days, the first day is considered the day the offeree receives the offer.
– Ira mailed Jack a letter on September 3rd that stated, “if you pay me $2,000, I will sell you my motorcycle. But you must respond within 7days. Otherwise, I will sell it to someone else.” Jack received the letter on the 8th and replied on the 11th. Since Jack responded within seven days from when he received the letter, his acceptance is timely. |
|
|
revocation
|
Revocation results from the canceling, annulling, or otherwise voiding of an offer.
Ryan sent letters to Sonya, Tina, and Victoria, offering each of them $1000 to star in a musical he was producing. Before any of them responded, he found out that Wally Xanos, the great female impersonator, was available. Ryan immediately sent messages to Sonya, Tina, and Victoria saying that the role had been filled; these messages revoked the offers Ryan had made. |
|
|
revocation effective upon receipt by offeree
|
A revocation is deemed to be effective upon its receipt by the offeree. A minority view holds that the revocation becomes effective when sent by the offeror.
Example of Revocation Effective Upon Receipt By Offeree – Ira changed his mind about selling his motorcycle to Jack so he immediately sent an overnight package with a letter revoking the offer. In the majority of jurisdictions, the revocation is effective when Jack receives it. |
|
|
Unil.Con.: revocation of offer rule
|
requires communication to the offeree of the fact that the offer is no longer open. Under the postal rule, although an acceptance is effective upon posting - a revocation is only effective UPON RECEIPT
|
|
|
rejection
|
An offer can be terminated on the grounds of rejection on the part of the offeree, that is if the offeree does not accept the terms of the offer
|
|
|
offeree
|
a person or entity to whom an offer to enter into a contract is made by another (the offeror).
|
|
|
rejection effective when received
|
A rejection becomes effective upon receipt by the offeror.
Example of Rejection Effective When Received – Mike had offered to sell his car to Nora for $2000 and gave her a week to make up her mind. Two days later Nora sent Mike a note saying that she did not want the car. The next day, Nora changed her mind but it was too late – Mike had already received the note and her rejection of the offer was effective. |
|
|
counteroffer
|
A counteroffer is an offer by the original offeree regarding the same transaction but containing terms that differ from those proposed in the original offer made by the offeror.
Zookeeps Co. offered to sell the elephant dung they collected to Adamâs Organic Farms for $20 per ton, with shipping provided. Eve, president of Adamâs Organic, sent a counteroffer for a price of $16 per ton but with no shipping provided. |
|
|
counteroffer as implied rejection
|
A counteroffer is an implied rejection of the original offer. It is, in effect, a new offer available for acceptance.
|
|
|
illusory promise
|
An illusory promise is an expression, which resembles promissory terms, but in actuality imposes no obligation upon the party making it.
|
|
|
promissory estoppel
|
when a person makes a false statement to another and the listener relies on what was told to him/her in good faith and to his/her disadvantage. In order to see that justice is done a court will treat the statement as a promise, and in a trial the judge will preclude the maker of the statement from denying it. Thus, the legal inability of the person who made the false statement to deny it makes it an enforceable promise called "promissory estoppel," or an "equitable estoppel."
|
|
|
moral obligation rule
|
A duty which one owes, and which he ought to perform, but which he is not legally bound to fulfill.
2. These obligations are of two kinds 1st. Those founded on a natural right; as, the obligation to be charitable, which can never be enforced by law. 2d. Those which are supported by a good or valuable antecedent consideration; as, where a man owes a debt barred by the act of limitations, this cannot be recovered by law, though it subsists in morality and conscience; but if the debtor promise to pay it, the moral obligation is a sufficient consideration for the promise, and the creditor may maintain an action of assumpsit, to recover the money. 1 Bouv. Inst. n. 623. |
|
|
legal detriment
|
A change in position by one to whom a promise has been made, or an assumption of duties or liabilities not previously imposed on the person, due to the person's reliance on the actions of the one who makes the promise.
|
|
|
failure of consideration
|
not delivering goods or services when promised in a contract. When goods a party had bargained for have become damaged or worthless, failure of consideration (to deliver promised goods) makes the expectant recipient justified to withhold payment, demand performance or take legal action
|
|
|
want for consideration
|
A comprehensive term for all transactions or situations where no inducement to a contract was intended to pass between the parties thereto and, therefore, no legally enforceable contract is created.
Want of consideration differs from failure of consideration, which refers to a situation wherein consideration was originally existing and valid but has since become valueless or ceased to exist. |
|
|
sufficiency of consideration
|
a rule of contracts that requires all parties to offer something of legal value in a contractual bargain.
Generally, courts do not require that the consideration benefit the offeree, or that it be of any substantial value, as long as it serves as an inducement for the promise of the other party. |
|
|
executed contract
|
An executed contract is a contract that has been fully performed by all of the parties to the contract.
Rex offered to sell Sam his baseball cards for $250. The next day Sam gave Rex $250 in cash and Rex gave Sam the cards. Once this exchange was completed, the contract was executed. |
|
|
executory contract
|
An executory contract is a contract that remains to be completed in the future by at least one of the contracting parties.
Lisa wanted to have her car fixed, so she paid Max $500 to make repairs on the car. Since Max has not yet made the repairs, this is an executory contract. |
|
|
meeting of the minds
|
Most jurisdictions hold that a contract is not formed until there has been a "meeting of the minds" according to the intentions of the parties.
Nick offered Olive $500 for her beautiful blue flower painting. Nick was referring to a painting of bluebells on a five foot by four foot canvas. Olive thought Nick was referring to a two foot by two foot canvas she called Sad Roses. Since they were each thinking of a different painting, there was no meeting of the minds. |
|
|
outward manifistation therory
|
theory stating that contracts are formed according to outward manifestations in accordance with the understanding of the supposed "reasonable man."
Vickie offered to sell her car to Will for a pack of gum. Will presented the pack of gum to Vickie, who refused to give Will the car. She argued that the value of the car far outweighed the value of a pack of gum and that no reasonable person would seriously believe such an exchange would be acceptable. |
|
|
Merit Music v Sonneborn
|
Court held that in the absence of fraud duress or material mistake a party to a contract with the capacity to understand a written document will be bound by his or her signature whether or not they read the document.
|
|
|
express contract
|
One which is manifested by words either written or oral.
|
|
|
implied in fact contract
|
One that is inferred by the law because the acts or conduct of the parties and the surrounding circumstances make it reasonable to assume that a contract exists between them even though the contract is never manisfested by words.
|
|
|
implied in law (Quasi contract)
|
One that is imposed by operation of law to do justice even though it is clear that no promise was ever manifested by words or ever intended. The creation of such a contract will occur where one party accepts or retains benefits that have been conferred upon him by another party who expected to be paid and who was not a volunteer.
|
|
|
quantum meruit
|
Refers to the reasonable value deserved for one's labor.
|
|
|
quantum valebant
|
Refers to reasonable value that is deserved as payment for goods
|
|
|
requirement contract
|
A contract to supply all of a certain type of goods or merchandise that a particular party may have a need for over a certain period of time.
|
|
|
output contracts
|
A contract to supply all of a certain type of goods or merchandise that a particular party may produce.
|
|
|
option contract
|
A contract wherin the promisor for consideration agrees to make a certain offer irrevocable
|
|
|
void contract
|
A contract which cannot be enforced by either of the parties.
|
|
|
voidable contract
|
A contract that can be disaffirmed by one or more of the parties for reasons related to legal immaturity or mental incapacity.
|
|
|
power of disaffirmance
|
A legally immature or mentally incapacitated person has the power to disaffirm a contract but for all other purposes the contract is valid unless and until it is disaffirmerd. The disaffermance occurs when the legally immature or mentally incapacitated person manifests to the other party an unwillingness to continue to be bound by the contract.
|
|
|
exculpatory clause
|
A provision in a contract that is intended to remove liability from one or more of the contracting parties that may result from certain acts or events.
|
|
|
contract of adhesion
|
One wherein the provisions have been drafted giving one party an unequal bargaining power.
|
|
|
unconscionable contract
|
A contract with a provision that no fair and honest person would make and no person in his or her right mind would accept. Such contracts are usually agreed to through "oppression" in that the promisee knows that he or she is giving up his or her rights but is forced to if he or she wishes to purchase the subject product. Or, he or she is not aware of the rights that are being given up but through "unfair surprise" (such as small print or vagueness in terms) signs the contract anyway.
|
|
|
condition
|
An act or event, other than a lapse of time, which affects a duty to render a promised performance. It may be a condition precedent, a condition concurrent or a condition subsequent.
|
|
|
condition precedent
|
Related to an event which must occur before a duty on the part of the defendant will arise. It may arise out of an express or implied term of the contract, or by operation of law under the doctrine of constructive conditions
|
|
|
condition concurrent
|
A type of condition precedent which exists when the parties to a contract are bound to render performance at the same time.
|
|
|
condition subsequent
|
Related to an even which, by agreement of the parties, operates to terminate a duty of performance after it has arisen.
|
|
|
express conditions
|
Arise out of a stated provision in the contract.
|
|
|
implied in fact conditions
|
Those which are necessary to the performance of the contract between the parties and therefore are deemed to have been intended by the parties, but are not expressly stated.
|
|
|
constructive conditions
|
Those that the law will imply even though the parties did not and possibly would not have included them in the contract. Such conditions will be implied by the law to promote justice.
|
|
|
doctrine of contructive conditions
|
Holds that the fulfillment of a promise in a bilateral contract can be construed to be a condition of the other party's performance even in the absence of an express provision to that effect.
|
|
|
substantial performance
|
The doctrine that holds that a plaintiff who has failed to perform a constructive condition in some minor or immaterial respect may nevertheless recover on the contract.
|
|
|
implied condition of cooperation
|
Implied in a contract whenefver the cooperation of the promisee is necessary for the performance of the promise.
|
|
|
waiver of condition
|
Results when a party to a contract voluntarily relinquishes his or her known right to assert the non-performance of a condition. Such waivers can be given by express agreement or through the conduct of a party
|
|
|
excuse of conditions
|
Occurs when one party's failure to performa condition occurred because said party was reacting to a material default on the part of the other party. Accordingly, the other party is barred from asserting the failure of a condition or conditions as a defense against the first party (usually the plaintiff).
|
|
|
assignment
|
A transfer of a contractual right. It is not a contract involving a promise to do something in the future, but is a present transfer of intangivle property.
|
|
|
divisible (or severable) contracts
|
A bilateral contract wherein the performance is divided into two or more seperate units, either as to subject matter or time, and performance of each party by one party is the agreed exchange for a corresponding part by the other party. Examples are construction contracts, contracts for the sale of goods and employment contracts.
|
|
|
Lawrence v Fox
|
1. A promise to repay a loan, which was for the benefit of another, is valid. 2. "That where one person makes a promise to another for the benefit of a third person, that third person may maintain an action upon it."
|
|
|
degligation and assumption of duties
|
Involves a situation in which the assignor transfers his or her duty of performance to another. The person transferring the duty of performance is known as the delegator and the person who assumes the duty is known as the delegatee.
|
|
|
creditor beneficiary
|
One who receives the benefit of a contract in satisfaction of an actual or supposed debt or obligation that existed between the third party beneficiary and the promisee to the contract.
|
|
|
third party beneficiary contract
|
A contract wherein performance by one party, the promisor, will confer a benefit upon third party beneficiary, that is, a person or entity other than the promisee.
|
|
|
donee beneficiary
|
One who receives the benefit of a contract wherein the promisee has expressed intent to bestow a gift upon said beneficiary.
|
|
|
intended beneficiary
|
One in whom the creation of an obligation in his or her favor was contemplated by the original parties to the contract. A third party must be an intended beneficiary in order to have a "Standing to Sue" when attempting to enforce the provisions of the contract.
|
|
|
incidential beneficiary
|
One who may receive the benefit of ther performance of the contractural provisions only incidentally and was neither intended to receive the performance as a gift nor in satisfaction of a debt. An incidental beneficiary does not have standing to sue for purposes of attempting to enforce the contract.
|
|
|
distinguishing between donee and creditor
|
majority rule today is that the the rights of both the donee and creditor vest upon the beneficiary's learning of the third party beneficiary contract and manifesting assent thereto. Therefore, the original parites reatin the power to defeat or alter the beneficiary's rights up until the time that the beneficiary 1) materially changes his or her position including the bringing of a lawsuit or 2) manifests his or her assent to the contract after learning of its existence.
|
|
|
beneficiary
|
a broad definition for any person or entity (like a charity) who is to receive assets or profits from an estate, a trust, an insurance policy or any instrument in which there is distribution. There is also an "incidental beneficiary" or a "third party beneficiary" who gets a benefit although not specifically named, such as someone who will make a profit if a piece of property is distributed to another.
|
|
|
rights against the promisee
|
A third party "donee" beneficiary has no rights against the promisee by reason of the promisor's failure to perform the contract. The "creditor" beneficiary, however, can sue the promisee on the original obligation since it remains unaffected by the third party beneficiary contract.
|
|
|
guaranty
|
A promise to answer for the debt, default, or miscarriage of another.
|
|
|
Statue of frauds
|
fraud and perjury in contract actions by requiring that certain types of contracts be evidenced by a writing signed by the party to be charged, the defendant in a civil action. Those contracts which are customarily within this Statute are as follows:1) A contract which by its terms is not to be performed within one year from the making thereof, 2) a promise to answer for the debt or default of another, 3) a promise in consideration of marriage, 4) a contract for the sale at real property, 5) a contract for the sale at goods of a value in excess of a certain amount.
|
|
|
parole evidence rule
|
governs the admissibility of evidence other than the actual agreement when a dispute arises over a written contract. When parties memorialize their agreements in writing, all prior oral and written agreements, and all contemporaneous oral agreements, merge in the writing, which is also known as an integration. The written contract may not be modified, altered, or varied by parol or oral evidence, provided that it has been legally executed by a person who intends for it to represent the final and complete expression of his or her understanding of the contract. This is not the case, however, where there has been some mistake or fraud in the drafting of the document.
|
|
|
modification
|
A change or alteration in existing materials.
A subsequent agreement entered into for consideration for purposes of modifying the prior contract. Only evidence related to agreements made prior to or at the same time as the written contract will be execluded as inadmissible under the prviously mentioned Parol Evidence Rule. Therefore, the Parol Evidence Rule does not apply to modifications. |
|
|
the collateral agreement doctrine
|
The doctrine which hlds that additional terms included in a seperate agreement and which were, in fact, intended by the parties even though they were not included in the original written contract may be enforced if this "collateral agreement" is one which 1) does not contradict any express provision of the main agreement, and 2) might naturally be made as a seperate agreement between the parties. Therefore evidence related to a Collateral Agreement will not be excluded as inadmissible under the Parol Evidence Rule.
|
|
|
termination by accord and satisfaction
|
An agreement to compromise an existing obligation which has become the subject of a good faith dispute. Satisfaction is the acceptance by one party to a contract of the agreed compromise, or accord. This acceptance of the accord results in the satisfaction, meaning that the original obligation has been terminated with the accepting party no longer being able to charge the performing party with a breach of contract.
|
|
|
termination by novation
|
A new contract that is, in effect an immediate discharge of a pre-existing contractual duty which creates a new duty in its place. It requires the replacement of one of the previously contracting parties with a new party to this new contract one who neither owed the previous duty nor was entitled to its performance.
|
|
|
termination by release
|
At common law, was a complete discharge of existing contractual obligations given by one party to the contract to the other in a written document under seal. Modernly, in those jurisdictions that do not use the formal seal, a Release is generally considered valid if supported by consideration.
|
|
|
merger
|
agreements are merged when one contract is absorbed into another. The merger of contracts is generally based on the language of the agreement and the intent of the parties. The merger of contracts is not the same as a merger clause, which is a provision in a contract stating that the written terms cannot be varied by prior or oral agreements.
|
|
|
termination by mutual recision
|
An agreement by the parties to an existing executory (non-performed) contract to consider their contract null and void. This recission is a contract in itself and requires mutual assent and consideration.
|
|
|
breach of contract
|
failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include not completing a job, not paying in full or on time, failure to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse, or any act which shows the party will not complete the work ("anticipatory breach.") Breach of contract is one of the most common causes of law suits for damages and/or court-ordered "specific performance" of the contract.
|
|
|
termination by impossibility of performance
|
A party to a contract will be released from an obligation to perform pursuant to the terms of a contract when neither from his or her act nor from his or her neglect and prior to being in default, it has become impossible for said party to perform
|
|
|
parole evidence rule
|
governs the admissibility of evidence other than the actual agreement when a dispute arises over a written contract. When parties memorialize their agreements in writing, all prior oral and written agreements, and all contemporaneous oral agreements, merge in the writing, which is also known as an integration. The written contract may not be modified, altered, or varied by parol or oral evidence, provided that it has been legally executed by a person who intends for it to represent the final and complete expression of his or her understanding of the contract. This is not the case, however, where there has been some mistake or fraud in the drafting of the document.
|
|
|
modification
|
A change or alteration in existing materials.
A subsequent agreement entered into for consideration for purposes of modifying the prior contract. Only evidence related to agreements made prior to or at the same time as the written contract will be execluded as inadmissible under the prviously mentioned Parol Evidence Rule. Therefore, the Parol Evidence Rule does not apply to modifications. |
|
|
the collateral agreement doctrine
|
The doctrine which hlds that additional terms included in a seperate agreement and which were, in fact, intended by the parties even though they were not included in the original written contract may be enforced if this "collateral agreement" is one which 1) does not contradict any express provision of the main agreement, and 2) might naturally be made as a seperate agreement between the parties. Therefore evidence related to a Collateral Agreement will not be excluded as inadmissible under the Parol Evidence Rule.
|
|
|
termination by accord and satisfaction
|
An agreement to compromise an existing obligation which has become the subject of a good faith dispute. Satisfaction is the acceptance by one party to a contract of the agreed compromise, or accord. This acceptance of the accord results in the satisfaction, meaning that the original obligation has been terminated with the accepting party no longer being able to charge the performing party with a breach of contract.
|
|
|
termination by novation
|
A new contract that is, in effect an immediate discharge of a pre-existing contractual duty which creates a new duty in its place. It requires the replacement of one of the previously contracting parties with a new party to this new contract one who neither owed the previous duty nor was entitled to its performance.
|
|
|
termination by release
|
At common law, was a complete discharge of existing contractual obligations given by one party to the contract to the other in a written document under seal. Modernly, in those jurisdictions that do not use the formal seal, a Release is generally considered valid if supported by consideration.
|
|
|
merger
|
agreements are merged when one contract is absorbed into another. The merger of contracts is generally based on the language of the agreement and the intent of the parties. The merger of contracts is not the same as a merger clause, which is a provision in a contract stating that the written terms cannot be varied by prior or oral agreements.
|
|
|
termination by mutual recision
|
An agreement by the parties to an existing executory (non-performed) contract to consider their contract null and void. This recission is a contract in itself and requires mutual assent and consideration. The consideration for recission is usually found in the fact that each party incurs a legal detriment by giving up their right to sue the other. In a case involving an executed (already performed) contract or a unilateral contract, an attempted rescission by mutual agreement would be lacking in consideration. Since the party who has received full performance is not giving up any right against the other, he or she is incurring no legal detriment.
|
|
|
breach of contract
|
failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include not completing a job, not paying in full or on time, failure to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse, or any act which shows the party will not complete the work ("anticipatory breach.") Breach of contract is one of the most common causes of law suits for damages and/or court-ordered "specific performance" of the contract.
|
|
|
termination by impossibility of performance
|
A party to a contract will be released from an obligation to perform pursuant to the terms of a contract when neither from his or her act nor from his or her neglect and prior to being in default, it has become impossible for said party to perform
|
|
|
anticipatory breach
|
when a party to a contract repudiates (reneges on) his/her obligations under that contract before fully performing those obligations. This can be by word ("I won't deliver the rest of the goods" or "I can't make any more payments") or by action (not showing up with goods or stopping making payments). The result is that the other party does not have to perform his/her obligations and cannot be liable for not doing so. This is often a defense to a lawsuit for payment or performance on a contract. One cannot repudiate his obligations and demand that the other person perform.
|
|
|
material vis-a-vis minor breach
|
If a breach is material in nature, the plaintiff is justified in treating the entire transaction as ended and may thereafter sue for damages. However, if the breach is minor in nature the plaintiff has a cause of action for damages caused by the breach; but the contract remains in effect.
|
|
|
termination by economic or commercial
|
A party to a contract will be freed from an obligation to perform even in situations where performance has not become totally impossible, yet unanticipated difficulties have made the performance vastly different than that intended by the parties.
|
|
|
impracticability
|
In the law governing sales, the Uniform Commercial Code allows either party to a contract to be excused from the legal obligations created by it where performance becomes impracticable because an unexpected event has occurred, such as a severe shortage of supplies due to unexpected and continual flooding.
|
|
|
prospective failure of condition
|
Occurs when an anticipatory breach is present and will excuse the non-breaching party from his or her performance
|
|
|
termination by frustration of purpose
|
A party to a contract will be freed from an obligation to perform in situations where the performance is still possible but because of unexpected events which have occurred after the formation of the contract, the main purpose of the parties has become so frustrated to make it such that the benefit to be received by one party from the other party is now totally destroyed or materially imparied
|
|
|
liquidated damages
|
Damages can be liquidated in a contract only if (1) the injury is either "uncertain" or "difficult to quantify"; (2) the amount is reasonable and considers the actual or anticipated harm caused by the contract breach, the difficulty of proving the loss, and the difficulty of finding another, adequate remedy; and (3) the damages are structured to function as damages, not as a penalty. If these criteria are not met, a liquidated damages clause will be void.
|
|
|
compensatory damages
|
damages recovered in payment for actual injury or economic loss, which does not include punitive damages (as added damages due to malicious or grossly negligent act).
|
|
|
consequential damages
|
Injury or harm that does not ensue directly and immediately from the act of a party, but only from some of the results of such act, and that is compensable by a monetary award after a judgment has been rendered in a lawsuit. Detriment that arises from the interposition of special, unpredictable circumstances. Harm to a person or property directly resulting from any breach of Warranty or from a false factual statement, concerning the quality or nature of goods sold, made by the seller to induce the sale and relied on by the buyer.
|
|
|
nominal damages
|
a small amount of money awarded to a plaintiff in a lawsuit to show he/she was right, but suffered no substantial harm. The most famous case of nominal damages was when Prime Minister Winston Churchill was awarded a shilling (about 25 cents) in a libel lawsuit he had brought against author Louis Adamic for writing that Churchill had been drunk during a dinner at the White House. The Prime Minister was vindicated, but the jury could not find that his towering reputation had been damaged.
|
|
|
mitigation of damages
|
In contract law the non-breaching party should mitigate damages or risk a reduction in recovery for the breach.
|
|
|
punitive or exemplary damages
|
damages awarded in a lawsuit as a punishment and example to others for malicious, evil or particularly fraudulent acts.
|
