BLW 201 Ch. 18

  1. compensatory damages and 4 subs
    contract damages placing the injured party in a position as good as the one he would have held had the other party performed; equals loss of value (minus) loss avoided by injured party (plus) incidental damages (plus) consequential damages

    loss of value, cost avoided, incidental damages, and consequential damages
  2. loss of value
    value of promised performance minuse value of actual performance
  3. cost avoided
    loss or costs the injured party avoids by not having to perform
  4. incidental damages
    damages arising directly out of a breach of contract
  5. consequential damages
    damages not arising directly out of breach but arising as a foreseeable result of the breach
  6. nominal damages
    a small sum awarded where a contract has been breached but the loss is negligible or unproved
  7. reliance damages
    contract damages placing the injured party in as good a position as she would have been in had the contract not been made
  8. two types of damages for misrepresentation
    benefit-of-the-bargain damages and out-of-pocket damages
  9. benefit-of-the-bargain damages
    difference between the value of the fraudulent party's performance as represented and the value the defrauded party received
  10. out-of-pocket damages
    difference between the value given and the value received
  11. punitive damages
    generally not recoverable for breach of contract
  12. liquidated damages
    reasonable damages agreed to in advance by the parties to a contract
  13. three limitations on damages
    foreseeability of damages, certainty of damages, and mitigation of damages
  14. foreseeability of damages
    potential loss that the party now in default had reason to know of when the contract was made
  15. certainity of damages
    damages are not recoverable beyond an amount that can be established with reasonable certainty
  16. mitigation of damages
    injured party may not recover damages for loss he could have avoided by reasonable effort
  17. remedies of equity (availability)
    only where there is no adequate remedy at law
  18. types of remedies in equity (3)
    specific performance, injunction, and reformation
  19. restitution
    restoration of the injured party to the position he was in before the contract was made
  20. availability of restitution (4)
    party injured by breach, party in default, statute of frauds, and voidable contracts
  21. party injured by breach
    if the other party totally breaches the contract by nonperformance or repudiation
  22. party in default
    for any benefit conferred in excess of the loss caused by the breach
  23. statute of frauds
    where a contract is unenforceable because of the statute of frauds, a party may recover beneifts conferred on the other party in reliance on the contract
  24. voidable contracts
    a party who has avoided a contract is entitled to restitution for any benefit conferred on the other party
  25. election of remedies
    if remedies aren't inconsistent, a party injured by a breach of contract may seek more than one
  26. loss of power of avoidance
    • a party with the power to avoid a contract may lose that power by:
    • affirming the contract
    • delying unreasonably in exercising the power of avoidance
    • being subordinated to the intervening rights of third parties
Card Set
BLW 201 Ch. 18
BLW 201 Chapter 18 terms