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25 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is a benefit of monetary damages? |
Offers courts an opportunity to allocate costs and then parties |
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What are monetary damages? |
They are damages awarded to solve a breach of contract. It is meant to leave the injured party in the same position they would enjoy had the terms of the disputed contract been completed. |
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What is specific performance? |
In order to comply with the terms of the contract so that transactions from mutual games can be completed. |
Example: supervision of the parties |
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What are remedies for breach of contract? |
Specific performance Monetary damages |
There are 2 |
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What is an efficient breach? |
The opportunity to employee resources to their optimal use which may require aborting the contract. |
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When can a breach of contract be efficient? |
When using Kaldor-hicks criterionwhere welfare increases when winners win more than losers lose. |
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When can breach of contract not be efficient? |
When the likelihood of breach increases it will lead to an increase in potential losses, which causes parties to be more reluctant to contract which may increase costs of contracting as well. |
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What are the types of damages for breach of contract? |
Expectation Nominal Reliance Restitution Liquidated |
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What is the definition of expectation damages? |
The amount the promisee should reasonably have expected to receive under the terms of the agreement. |
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When can a defendant be held liable under expectation damages? |
If damages could be reasonably foreseen by the parties at the time of contracting Under special circumstances, If the defendant was made aware |
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Why is the communication of special circumstances important? |
Enhances efficiency Reduces the risk of liability (for events that cannot be foreseen) |
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What must the aggrieved have done to find expectation damages to be efficient? |
There must be a reasonable effort on the part of the aggrieved to mitigate the losses as a result of breach. Otherwise profitable opportunities will not be pursued. |
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What are nominal damages? |
Damages awarded when the promisee has been wrong but the damages are negligible, or when, the damages suffered were not established. |
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What are reliance damages |
They are the cost the plaintiff incurs as a result of relying on a broken promise. |
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If the plaintiff was rewarded reliance damages, what position with the plaintiff be in? |
The plaintiff would be put in the same position they were in before they reasonably relied on the promise. |
Not better, nor worse. |
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It is efficient for parties to over rely. True or False. |
False. It is inefficient. |
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Party should engage in the efficient amount of precaution. True or False. |
True. |
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What is restitution? |
A remedy for unjust enrichment. When the court asks for the return of the benefit given to the breaching party to prevent unjust enrichment. |
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When does restitution occur? |
Restitution occurs when benefits are given to the breaching party who has failed to perform the promise. |
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What is unjust enrichment? |
When one person is rewarded at the expense of another in circumstances that the law sees as unjust. |
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What are liquidated damages? |
Damages in the amount agreed upon by the parties in contractual relations to be paid in the event of a breach. |
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Liquidated damages do not serve as an economic purpose. True or False. |
False. They do serve an economic purpose. Because if the damages are high enough (but not too high) it may cause the parties to perform. |
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What are the benefits of liquidated damages? |
Enable out-of-court settlements Reduce the courts' costs of assessing damages
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Why can liquidation damages be negative? |
Courts may refuse to enforce them because such high damages could amount to an unconscionable/unfair courts should not hold the power to approve |
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Courts should not hold the power to approve or deny liquidation damages. True or False. |
False. Courts should hold the power to approve or deny liquidation damages in the interest of efficiency and fairness. |
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