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Remedies for Breach of Contract pages 210-214 By Lauren Conroy.

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Presentation on theme: "Remedies for Breach of Contract pages 210-214 By Lauren Conroy."— Presentation transcript:

1 Remedies for Breach of Contract pages By Lauren Conroy

2 Remedies for Breach of Contract The law divides breaches of contract into two categories: the major breach and the minor breach. Different remedies are granted for injuries caused by minor and major breaches Remedy: action or procedure followed to enforce a right or to compensate for an injury

3 Basic Remedies for Major Breach 1.Rescission and restitution- cancelling the contract and returning whatever has been received under it. 2.Money damages- the payment of money to compensate for injury. 3.Specific performance- a court order commanding the breaching party to perform what was promised in the contract.

4 Minor Breaches The party injured by a minor breach must generally continue to perform the duties defined by the contract Only remedy generally available is money damages Offset: deducting the cost of completing or fixing a minor breach from payment of the contract price to the breaching party

5 Rescission and Restitution Restitution permits the injured party to recover money or property When rescission is granted, all the contractual obligations of the parties are extinguished

6 Types of Money Damages Compensatory: seeks to place injured parties in the same financial position they would have been in if there was no breach Consequential: the court tries to place injured parties in the same financial position they would have been in if the contract was performed

7 Types of Money Damages Liquidated: damages agreed upon before a possible breach of contract Punitive: the purpose is to punish and make an example of the defendant (occurs when there is an intentional tort) Nominal: small amount of award money when no injury has occurred

8 Remedies for Breach of Contract Money damages are not always an adequate remedy for breach of contract Decree for Specific Performance: the court orders the defendant to do exactly what was promised in the contract.


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