compensate the buyer after he has already paid. The right is common in real estate deals (e.g. a buyer has a contract to purchase a house at a certain price, but the seller refuses). However, if the seller has sold the same house multiple times, only one of the buyers can get the house. Study Table 1: Legal Remedies Remedy Availability Result Nominal The injured party has not Usually the plaintiff is Damages suffered a financial loss. awarded $1 and wrongdoing is proven but without damages. Compensatory Injured party proves that the Compensated to make victim Damages injury arose as a direct result whole. Includes gains of the breach of contract prevented and losses sustained. Punitive Only available when the Wrongdoing is punished to Damages breach of contract involves a set an example for other who tort or bad faith insurance would commit the same crime. Liquidated Sets a reasonable Breaching party pays the Damages predetermined amount to be contracted amount, if paid in the event that the qualifications are met. contract is breached. Cannot be punitive. Consequential When circumstances that the The injured is given all Damages breaching party is aware of the damages they knew of. or should be aware of cause the other party injury. Study Table 2: Equitable Remedies Remedy Availability Result Specific Performance The case situation is The breaching has to special, monetary damages fulfill the terms stated in the is unnecessary, and/or there contract. Unless extreme court is no readily available supervision required substitute Injunction Put in place when there is orders for one party an apparent threat of breach either do or not do a particular of contract. ( before breach action. has taken place)
compensate the buyer after he has already paid. The right is common in real estate deals (e.g. a buyer has a contract to purchase a house at a certain price, but the seller refuses). However, if the seller has sold the same house multiple times, only one of the buyers can get the house. Study Table 1: Legal Remedies Remedy Availability Result Nominal Damages The injured party has not suffered a financial loss. Usually the plaintiff is awarded $1 and wrongdoing is proven but without damages. Compensatory Damages Injured party proves that the injury arose as a direct result of the breach of contract Compensated to make victim whole. Includes gains prevented and losses sustained. Punitive Damages Only available when the breach of contract involves a tort or bad faith insurance Wrongdoing is punished to set an example for other who would commit the same crime. Liquidated Damages Sets a reasonable predetermined amount to be paid in the event that the contract is breached. Breaching party pays the contracted amount, if qualifications are met. Cannot be punitive. Consequential Damages When circumstances that the breaching party is aware of or should be aware of cause the other party injury. The injured is given all the damages they knew of. Study Table 2: Equitable Remedies Remedy Availability Result Specific Performance The case situation is special, monetary damages is unnecessary, and/or there is no readily available substitute The breaching has to fulfill the terms stated in the contract. Unless extreme court supervision required Injunction Put in place when there is an apparent threat of breach of contract. ( before breach has taken place) orders for one party either do or not do a particular action.
Ch-23-Contract-Remedies.docx