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23 Cards in this Set
- Front
- Back
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Breach of Contract |
Someone breaches a contract when he fails to perform a duty without a valid excuse.. |
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Remedy |
Remedy is the method a court uses to compensate an injured party. |
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Injunction |
A court order that requires someone to do something or refrain from doing something. |
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Expectation damages |
The money required to put one party in the position she would have been had the other side performed the contract. |
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Specific performance |
Forces both parties to complete the deal. A court will award specific performance, ordering the parties to perform the contract, only in cases involving the sale of land or some other asset that is unique. |
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Interest |
A legal right in something |
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Expectation interest |
Refers to what the injured party reasonably thought she would get from the contract. The goal is to put her in the position she would have been if both parties had fully performed their obligations. |
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Reliance Interest |
The injured party may be unable to demonstrate expectation damages, perhaps because it is unclear he would have profited. But he may still prove that he expended money in reliance on the agreement that in fairness he should receive compensation Puts the inured party in the position he would have been had the parties never entered into a contract. |
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Restitution Interest |
The injured party may be unable to show an expectation interest or reliance. But perhaps she has conferred a benefit on the other party. Here the objective is to restore the injured party the benefit she has provided. Is designed to return to the injured party benefits he has conferred on the other party. |
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Equitable interest |
In some cases, money damages will not suffice to help the injured party. Something more is needed, such as an order to transfer property to the injured party (specific performance) or an order forcing one party to stop doing something (an injunction). |
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Compensatory damages |
Damages that flow directly from the contract. |
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Consequential damages |
Foreseeable losses that are not directly related to the subject matter of a contract. Under the UCC, the buyer is entitled to consequential damages provided that the seller could reasonably have foreseen them. |
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Incidental damages |
Relatively minor costs that the injured party suffers when responding to the breach. |
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Cover |
To make a good faith purchase of goods similar to those in the contract. |
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Recission |
To "undo" a contract and put the parties where they were before they were before they made the agreement.
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Quasi-Contract restitution |
A court may award restitution, even int he absence of a contract (Quasi contract), where one party has conferred a benefit on another and it would be unjust for the other party to retain the benefit. |
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Preliminary Injunction |
An order issued early in a lawsuit prohibiting a party from doing something during the course of the lawsuit. |
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Permanent injunction |
An order issued by the trial court that permanently prohibiting a party from doing something. |
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Reformation |
A process in which a court will partially rewrite a contract. |
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Mitigate |
To keep damages as low as is reasonably possible.
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Nominal Damages |
A token sum, such as one dollar, given to a plaintiff who demonstrates a breach but no serious injury. |
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Liquidated Damages Clause |
A provision in a contract that declares in advance that one party will receive if the other side breaches. A court will generally enforce a liquidated damages clause if (1) at the time of creating the contract it was very difficult to estimate the actual damages, and (2) The liquidated amount is reasonable. |
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Punitive Damages |
Punitive damages are designed not to compensate the injured party but to punish the breaching party. |
