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