In civil cases, damages are the remedy that a party requests the court award in order to try to make the injured party whole. Typically damage awards are in the form of monetary compensation to the harmed party. Damages are imposed if the court finds that a party breached a duty under contract or violated some right. The sum of money included in the damages can be compensatory damages that are calculated based on the harmed party’s actual loses, or punitive damages intended to punish the wrongdoer. The term "actual damages" is synonymous with compensatory damages and excludes punitive damages. Show In a contract case, punitive damages are generally not awarded. This is because the law generally recognizes that parties should be allowed to breach a contract where it would be more economically efficient to do so. Thus, the law does not punish a party for breach, it simply seeks to put the non-breaching party back into a fair position. This can mean the court awards the non-breaching party either expectancy damages which is what the party expected to receive under the contract, reliance damages which is the economic position the party would have been in had they not relied on the contract, or restitution which is an equitable remedy to take away profits from the party that breached. There are also liquidated damages which contract parties can agree to in advance in the event of breach. In contract law, if a court determines that damages will not properly compensate the injured party, the court may choose to award specific performance. In a tort case, the injured party can receive compensatory damages to compensate for all types of losses, including direct costs for medical car, property damage, or lost wages. It can also include indirect costs such as compensating for pain and suffering or inconvenience. When a tort wrongdoer was willfully reckless or the harm was particularly bad, the court may award punitive damages in addition to compensatory damages. For certain types of injuries, statutes provide that successful parties should receive some multiple of their "actual damages" -- e.g., treble damages. Federal MaterialU.S. Constitution and Federal Statutes
Federal Court Rules and Judicial Decisions
State Material
State Judicial Decisions
[Last updated in September of 2022 by the Wex Definitions Team]
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You do not currently have access to this chapter. PurchaseOur books are available by subscription or purchase to libraries and institutions. Purchasing information What is an specific performance?A contractual remedy in which the court orders a party to actually perform its promise as closely as possible, because monetary damages are somehow inadequate to fix the harm. Most commonly ordered in cases involving real property and rare chattels. contracts.
What triggers specific performance quizlet?To obtain specific performance, there must be 1) a valid contract with more definite and certain terms (must be more definite than money damages action), 2) inadequate legal remedy, 3) feasible enforcement, 4) performance mutuality, 5) P's contract conditions satisfied or excused, and 6) no unfairness.
Which of the following statements is true of consideration?Answer and Explanation: C. The consideration must be contemporaneous and a part of both parties' understanding of the contract terms.
In which of the following situations is a court most likely to award specific performance?The most common reason courts grant specific performance is that the subject of the contract is unique, when it's not merely a matter of money or where the true amount of damages is unclear. When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser's situation.
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