LWC1 Chap 18 Flashcards.txt

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LWC1 Chap 18 Flashcards.txt
2012-09-24 17:42:33

LWC1 Chap 18
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  1. Breach
    When someone fails to perform a duty w/o a valid excuse
  2. Remedy
    Method a court uses to compensate an injured party. Focus is how to help the injured party w/o unfairly harming the other person.
  3. Types of Remedies
    • 1.Injunction
    • 2.Expectation damages
    • 3.Specific performance
    • 4.Liquidated damages clause
  4. Injunction
    An order forcing someone to do something or refrain from doing something
  5. Expectation damages
    Money required to put one party in the position she would have been in had the other side performed the contract
  6. Specific performance
    Used in cases of rare property. Forces both parties to complete the deal.
  7. What assets are included in specific performance
    • 1.rare works of art
    • 2.Real Estate
    • 3.secret formulas
    • 4.patents
    • 5.shares in closely held corp.
  8. Liquidation damages clause
    Condition in contract that declares in advance what one party will receive if other breaches.
  9. Interest
    Legal right in something such as a contract
  10. What is the 1st step a court takes in choosing a remedy?
    Identify the interest it is protecting
  11. What are the 4 principal contract interests a court may seek
    • 1.Expectation interest
    • 2.Reliance Interest
    • 3.Restitution Interest
    • 4.Equitable Interest
  12. Expectation Interest
    Puts the injured party in the position she would have been in had both sides fully performed
  13. What are the 3 components of Expectation interest
    • 1. Compensatory damages
    • 2. Consequential damages
    • 3. Incidental damages
  14. Compensatory damages
    flow directly from the contract as a result of breach. injured party must prove with reasonable certainty that breach caused damages.
  15. Consequential damages
    result from the unique circumstances of the particular injured party. Injured may recover only if breaching party should have foreseen them
  16. Incidental damages
    minor costs an injured party incurs responding to a breach.
  17. Reliance Interest
    Puts the injured party in the position he would have been in had the parties never entered into a contract. focuses on the time and money that the injured spent performing his part of agreement. If there is no valid contract court may reward reliance damages under promissory damages.
  18. Restitution Interest
    returns to the injured party a benefit that he has conferred on the other party, which it would be unjust to leave with that person.
  19. Equitable Interest
    results when the money is not enough to help the injured.
  20. What are the remedies under Equitable Interest
    • 1.Specific performance-court orders parties to perform
    • 2.Injunction-court order requiring someone to do or refrain from doing something
    • 3.Reformation-court will partially re-write a contract if thinks written agreement has simple mistake or to save it
  21. What are special issues of damages
    • Mitigation
    • Nominal damages
    • Liquidation damage clause
    • Punitive damages
  22. Mitigation
    May not recover for damages he could have avoided with reasonable efforts
  23. Nominal damages
    a token sum, such as a $1, given to an injured plaintiff who cannot prove damages
  24. Punitive damages clause
    designed not to compensate the injured party but to punish the breaching party
  25. 3 guideposts courts must consider in granting punitive damages
    • 1.reprehensibility of conduct
    • 2.ratio between harm suffered and award
    • 3.difference between punitive award and civil penalties used in similar cases