Professional Documents
Culture Documents
Contracts - Breach of Contract and Remedies
Contracts - Breach of Contract and Remedies
Contracts Breach of
Contract and Remedies
Introduction
Damages.
Rescission and Restitution.
Specific Performance.
Reformation.
Recovery Based on Quasi Contract.
1: Damages
Types of Damages:
Consequential Damages.
Breaching party is aware or should be aware, cause
the injury party additional loss.
Punitive Damages.
Available when tort is also involved.
Nominal Damages.
No financial loss.
3
2: Mitigation of Damages
When breach of contract occurs, the
innocent injured party is held to a duty to
reduce the damages that he or she
suffered.
Duty owed depends on the nature of the
contract.
Penalties.
Specify a certain amount to be paid in the event
of a default or breach of contract and are
designed to penalize the breaching party.
5
Restitution.
3: Specific Performance
Equitable remedy calling for the
performance of the act promised in the
contract.
Remedy in cases where the consideration
is:
Unique;
Scarce; or
Not available remedy in contracts for personal
services.
4: Reformation
Equitable remedy allowing a contract to
be reformed, or rewritten to reflect the
parties true intentions.
Available when an agreement is
imperfectly expressed in writing.
5: Recovery Based on
Quasi Contract
Equitable theory imposed by courts to obtain
justice and prevent unjust enrichment.
Quantum meruit. Party seeking recovery must
show the following:
A benefit was conferred to the other party.
Party conferring did so with the reasonable expectation
of being paid.
The benefit was not volunteered.
Retaining benefit without paying for it would result in
unjust enrichment of the party receiving the benefit.
9
6: Election of Remedies
Doctrine created to prevent double
recovery.
Nonbreaching party must choose which
remedy to pursue.
UCC rejects election of remedies.
7: Waiver of Breach
A pattern of conduct that waives a number of
successive breaches will operate as a continued
waiver.
Nonbreaching party can still recover damages,
but contract is not terminated.
Nonbreaching party should give notice to the
breaching party that full performance will be
required in the future.
11
8: Contract Provisions
Limiting Remedies
Exculpatory clauses.
12
FACTS:
Fujitsu shipped a container of silicon wafers from
13
HELD:AFFIRMED.FORFUJITSU.
Fujitsu could not mitigate its damages because
14
15
17
18
19