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Remedies for breach of contract
Remedies of breach to the guilty party in a contractual agreement
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REMEDIES FOR BREACH OF CONTRACT
What are the Remedies for Breach of Contract?
There are several remedies for breach of contract, such as award of damages, specific performance, rescission, andrestitution. In courts of limited jurisdiction, the main remedy is an award of damages. Because specific performance and rescission are equitable remedies that do not fall within the jurisdiction of the magistrate courts, they are not covered in this tutorial.
What Damages Can Be Awarded?
There are two general categories of damages that may be awarded if a breach of contract claim is proved. They are:
1. Compensatory Damages. Compensatory damages (also called “actual damages”) cover the loss the nonbreaching party incurred as a result of the breach
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General Damages. General damages cover the loss directly and necessarily incurred by the breach of contract. General damages are the most common type of damages awarded for breaches of contract.
Example: Company A delivered the wrong kind of furniture to Company B. After discovering the mistake later in the day, Company B insisted that Company A pick up the wrong furniture and deliver the right furniture. Company A refused to pick up the furniture and said that it could not supply the right furniture because it was not in stock. Company B successfully sued for breach of contract. The general damages for this breach could include:
• refund of any amount Company B had prepaid for the furniture; plus
• reimbursement of any expense Company B incurred in sending the furniture back to Company A; plus
• payment for any increase in the cost Company B incurred in buying the right furniture, or its nearest equivalent, from another seller.
B. Special Damages. Special damages (also called “consequential damages”) cover any loss incurred by the breach of contract because of special circumstances or conditions that are not ordinarily predictable. These are actual losses caused by the breach, but not in a direct and immediate way. To obtain damages for this type of loss, the nonbreaching party must prove that the breaching party knew of the special circumstances or requirements at the time the contract was
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2. Punitive Damages. Punitive damages (also called “exemplary damages”) are awarded to punish or make an example of a wrongdoer who has acted willfully, maliciously or fraudulently. Unlike compensatory damages that are intended to cover actual loss, punitive damages are intended to punish the wrongdoer for egregious behavior and to deter others from acting in a similar manner. Punitive damages are awarded in addition to compensatory damages.
Punitive damages are rarely awarded for breach of contract. They arise more often in tort cases, to punish deliberate or reckless misconduct that results in personal harm.
How are Compensatory Damages
Equuscorp launched proceedings in the Supreme Court of Victoria against each of the respondents. Equuscorp’s claims were for “loss and damage” for breach of the loan agreements and for money had and received. The trial judge dismissed Equuscorp’s contractual claim in all eight cases and upheld the restitution claim in two cases. The respondents appealed this decision in the Supreme Court of Victoria’s Court of Appeal. In this appeal, the majority held that the trial judge erred and that Equuscorp was not entitled to restitution. Equuscorp appealed against the decision of the Court of Appeal in relation to the three respondents. Its grounds for appeal included that the Court of Appeal erred in deciding: a) that Equuscorp was not entitled to restitution for the unenforceable loan agreements; b) that it was not unjust for the respondents to keep the amounts pursuant to the unenforceable loan agreements; and c) that restitution was not assigned as a right or remedy to recover the amounts under the unenforceable loan agreements.
Damages in the United States include two categories. Compensatory damages are intended to compensate for the plaintiff’s loss. Punitive damages, on the contrary, are meant to punish the defendant .The punitive damages exceed the plaintiff’s loss, to dissuade the defendant from any further wrongdoings. For instance, having a company pay significant punitive damages may encourage it to greater caution. Another difference between the two categories is the money involved. If the damages are compensatory, the money usually goes entirely to the plaintiff, but if they are punitive, part of the money goes to the law firm and part to the plaintiff.
Suppose that the contract had no liquidated damages provision (or the court refused to enforce it) and X Entertainment breached the contract. The breach caused the release of the film to be delayed until the fall. Could Bruno seek consequential (special) damages for lost profits from the summer movie market in that situation? Explain. P.223-224
4. Compensation is another common punishment for fraud. This is a requirement for the individual convicted of the crime to pay back the amount taken from the victim in full. The judge may allow payments to be made, or provide the criminal with a set amount of time in which they need to pay everything of compensation.
California and Hawaiian Sugar Company contracted Sun ship to build a vessel. The contract gave Sun Ship almost two years to complete the work. The contract contained a liquidated clause that required Sun Ship to pay 17,000 dollars per day for ever day that the ship was not delivered after the agreed date. The ship was delivered after eight and a half months after the agreed delivery date. During the period, the ship had not been delivered, California and Hawaiian Sugar Company suffered actual losses of 368,000 dollar. The defendant refused to pay the liquidated damages and the plaintiff brought an action to recover the damages.
The second issue is whether or not the defendant has an obligation to reimburse for an injury. The outcome of this second issue depends whether or not it is rational for the defendant to have to pa...
If a breach of contract is both material and opportunistic, the injured promisee has a claim in restitution to the profit realized by the defaulting promisor as a result of the breach. Liability in restitution with disgorgement of profit is an alternative to liability for contract damages measured by injury to the promisee.
"A contract is a legally enforceable promise or set of promises. In other words, when promises have the status of contract, the contracting party harmed by a breach of the contract is entitled to obtain legal remedies against the breaching party" (Mallor et al., 2015, p. 320)
This is where the individuals exercise their rights to seek compensations for damages or injuries. Also this is a law that is not controlled by the judges based on previous things that had happen in the past.
Both passengers of the vehicle have currently filed suit against the company for compensatory damages. Compensatory damages are intended to provide relief to the affected individuals. The driver of the vehicle has suffered a back injury which prohibits him from participating in military training. This has directly resulted in his inability to deploy so he can sue the company for the money that he would have received had he deploye...
and remedies applied by courts of law in civil proceedings giving the plaintiff or claimant relief
A tort is wrongful interference against a person or property, other than breaches of contract, for which the courts can rectify through legal action. The reform effort is aimed at reducing the number of unnecessary lawsuits that burden the court system while still allowing injured parties compensation when they’ve been wronged. This latest effort at tort reform has given rise to the same spirited rhetoric that might be found in a courtroom.
The plaintiff must prove that the defendant had a duty to act reasonably, that the defendant failed to fulfill that obligation, that the breach of duty caused the plaintiffs injuries, and that the plaintiff suffered some sort of injury. In order to prove that the defendant was negligent and therefore liable for their injuries, the plaintiff must prove all of the elements which are duty, breach, proximate cause, and damages. For instance, one of the elements is damages, meaning the plaintiff must have suffered damages (injuries, loss, etc.) in order for the defendant to be held liable. So even if you can prove that the defendant indeed acted negligently, you may not collect damages if you didn't suffer any injuries. The law will not hold a defendant liable for every injury to the plaintiff but only for those injuries that are proven and directly related to a breach of a
Breach of a contract – failure or refuse to perform than the contract has been breach than the other party has the right to terminate the contract.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,