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29 Cards in this Set
- Front
- Back
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expectation interest
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interest in having the benefit of the bargain by being put in a position as good as the one they would have been in had the contract been performed
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reliance interest
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interest in being reimbursed for loss caused by reliance on the contract by being put in a position as good as the one they would have been in had the contract not been made
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restitution interest
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interest in having restored to them any benefit that they had conferred on the other party
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compensatory damages
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contract damages aimed at protecting injured parties expectation interest; equals loss of value minus loss avoided by injured party plus incidental damages plus consequential damages
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loss of value
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value of promised performance minus value of actual performance
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cost avoided
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loss or costs the injured party avoids by not having to perform
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incidental damages
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damages arising directly out of a breach of contract (ex: costs incurred to acquire the nondelivered performance from some other source)
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consequential damages
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damages not arising directly out of a breach but arising as a foreseeable result of the breach (includes lost profits and injury to person or property)
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reliance damages
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contract damages that place injured party in as good a position as she would have been had the contract not been made (satisfies reliance interest)
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nominal damages
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a small sum awarded where a contract has been breached but the loss is negligible or unproved (may include court costs)
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damages for misrepresntation
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most states will give benefit-of-bargain for fraud and out-of-pocket for nonfraudulent misrepresentation (a few will give out-of-pocket for both)
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out-of-pocket damages
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difference between value given and value received
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benefit-of-the-bargain damages
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difference between the value of the fraudulent party's performance as represented and the value the defrauded party received
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punitive damages
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not recoverable for breach of contract (unless accompanied by a tort)
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liquidated damages
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reasonable damages agreed to in advance by the parties to a contract (enforced if it amounts to a reasonable forecast of loss that results)
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foreseeability of damages
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potential loss that party now in default had reason to know of when contract was made
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certainty of damages
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damages are not recoverable beyond an amount that can be established with reasonable certainty
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mitigation of damages
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injured party may not recover damages for loss he could have avoided by reasonable effort
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remedies in equity
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only available when there is no adequate remedy at law
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specific performance
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court decree ordering breaching party to render promised performance (always granted for breach of contract for sale of real property)
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injunction
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court order prohibiting a party from doing a specific act
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reformation
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court order correcting a written contract to conform with the intent of the contracting parties
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restitution
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restoration of the injured party to the position she was in before contract was made (satisfies restitution interest)
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party injured by breach
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if the other party totally breaches the contract by nonperformance or repudiation (restitution available)
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party in default
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one party partially performs, then breaches party in default is entitled to restitution; for any benefit conferred in excess of the loss caused by the breach
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statute of frauds
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where a contract is unenforceable because the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract
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voidable contracts
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a party who had avoided a contract is entitled to restitution for any benefit conferred on the other party
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election of remedies
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if remedies are inconsistent, a party injured by a breach of contract may seek more than one remedy
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loss of power of avoidance
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a party with the power to avoid a contract may lose that power by affirming the contract, delaying unreasonably in exercising the power of avoidance, or being subordinated to the intervening rights of third parties
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