Fundamentals of Business Law
Quiz 12 :
Breach and Remedies
The case shows a bargained for situation where the party not in breach can recover as damages the expected profit or expected benefit. The fact set indicates that the non-breaching party could or should be placed in the position they would have been in if the contract had been fully performed. A typical way to calculate, estimate or measure would be to determine the cost to complete the work. The facts indicate that the cost to complete is valued at $500. This amount is considered compensatory in nature. Compensatory damages compensate for the sustained loss of a bargain.
Compensatory Damages : With respect to compensatory damages, a defendant is accountable to an accuser for all consequences of the defendant's illegal act. Consequential Damages: consequential damages are those types of compensatory damages that may be granted when the loss agonized by a plaintiff isn't produced immediately by the unlawful conduct of an offender. Consequential damages are placed on the causing harm to the accuser's career. They aren't based on the damage itself that was the direct effect of the offender's conduct. Nominal Damages : generally, such damages are recoverable by a accuser who effectively establishes that he/she has agonized a damage caused by the unlawful conduct of an offender, but can't offer proof of a loss which can be compensated. Courts award Nominal Damages : the claims of such damages in contracts are very rare. Because, most breaches of an agreement usually results in any form of financial damage to the non-breaching party.
Compensatory Damages are those damages which compensate the party for the loss beard by them due to non-performance of the other party. Consequential Damages are also known as special damages, and arise due to default of one party in meeting contractual obligation. Consequential damages are different from Compensatory damages in a way that former are caused because of special circumstances which are beyond the contract whereas later are caused due to non-performance of one party's performance. Nominal Damages are awarded by court to the plaintiff party, when breach of contract is done by defendant party but there is no financial loss, but only a technical injury. These damages are awarded just as a matter of principle that breach has occurred so some damages must be imposed.
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