Presentation on theme: "Remedies for Breach of Contract"— Presentation transcript:
1Remedies for Breach of Contract CHAPTER 143/27/2017LESSON 14-1Remedies for Breach of ContractDistinguish between minor and major breachDescribe when the remedies of rescission and specific performance are availableDefine four types of damages and tell when they will be awarded by courts
2TYPES OF BREACH AND REMEDIES How does minor breach affect the victim’s duties?How does major breach affect the victim’s duties?What are rescission and restitution?
3TYPES OF MONEY DAMAGES Compensatory Consequential Liquidated Punitive Nominal
5Denial of Remedies for Breach of Contract LESSON 14-2Denial of Remedies for Breach of ContractDescribe the election of remediesDescribe the requirement to mitigate damagesExplain how the statute of limitations and bankruptcy affect remedies for breach of contract
6HOW CAN ELECTION OF ONE REMEDY BAR USE OF ANOTHER REMEDY? An injured party must elect, or choose, a remedy when suing.Specific performance and damages cannot be recovered for the same breach because specific performance is not available when damages are an adequate remedy.
7HOW CAN FAILURE TO MITIGATE DAMAGES ELIMINATE REMEDIES? The injured party must usually take reasonable steps to mitigate damages.
8HOW CAN WAIVER ELIMINATE REMEDIES? Sometimes a party intentionally and explicitly gives up a contractual right.This is called a waiver.
9HOW CAN THE STATUTE OF LIMITATIONS ELIMINATE REMEDIES? Statutes in all states deny any remedy if suit is not commenced within a certain time after a legal claim arises.Four years is a common time for the statute of limitations for contracts.Three years is a common time for the statute of limitations for torts.
10HOW CAN BANKRUPTCY ELIMINATE REMEDIES? Bankruptcy is a legal proceeding whereby a debtor’s assets are distributed among his or her creditors to discharge debts.
11REMEDIES FOR BREACH OF CONTRACT Rescission and RestitutionDamagesSpecific PerformanceInjunctionWaiverConsequentialCompensatoryLiquidatedPunitiveNominal