Term
| Value of Contract Remedy – |
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Definition
the primary theory of damages when a valid contract is breached
Compensatory damages / Economic |
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Term
| formula for calculating “value of the contract” compensatory damages, |
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Definition
| Formula = LV – CA + ID + CD |
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Term
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Definition
| value of promised performance minus value of actual performance |
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Term
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Definition
| loss or costs the injured party avoids by not having to perform |
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Term
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Definition
| arise directly out of a breach |
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Term
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Definition
| not arising direction out of a breach |
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Term
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Definition
| a small sum ($1) awarded where a contract has been breached but the loss is negligible or unproved |
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Term
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Definition
| a set amount, reasonable under the circumstances, agreed upon in advance by the parties to a contract |
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Term
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Definition
contract damages placing the injured party in as good a position as she would have been in had
the contract not been made; compensate for the loss
o Sole remedy in promissory estoppel situations |
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Term
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Definition
restoration of injured party to position she was in before the contract was made, generally returning value given to the other party; wrongful party must give something back
Unenforceable Contracts
Voidable Contracts |
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Term
| Foreseeability of Damages – |
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Definition
| potential loss that the party now in default had reason to know of when the contract was made |
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Term
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Definition
| damages are not recoverable beyond an amount that can be established with reasonable certainty |
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Term
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Definition
| injured party may not recover damages for loss he could have avoided by a reasonable effort |
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Term
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Definition
| court order requiring breaching party to render promised performance; must do what they were obligated to do |
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Term
| three types of equitable remedies |
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Definition
Specific Performance
Injunction
Reformation |
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Term
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Definition
| court order requiring a party to do, or prohibiting a party from doing, a specific act |
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Term
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Definition
| court order correcting a written contract to conform with the original intent of the contracting parties |
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Term
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Definition
if remedies are not inconsistent, a party injured by a breach of contract may seek more than one; however, a party may not get double recovery
o Value of Contract = no other remedies allowed
o Reliance and Restitution = can do both |
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Term
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Definition
| an agreement of a buyer to purchase a seller’s entire output for a stated period |
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Term
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Definition
| a doctrine enforcing some noncontractual promises |
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Term
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Definition
| only one party makes a promise |
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Term
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Definition
| substantive law; written in full; any discussion beforehand no longer matters if it is not stated in the contract |
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Term
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Definition
| parties express intention that it is the full and final written expression of the agreement |
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Term
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Definition
| to transfer to a third party of a contractual obligation |
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Term
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Definition
| court order requiring breaching party to render promised performance; must do what they were obligated to do |
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