I. Remedies to breach of contract
1. money damages
2. accept the breach
actual damages- an amount of money awarded for damages directly attributable to another party’s breach of contract or tort: for example, physicians fees when one party wrongly injures another, and financial losses resulting form failure to deliver goods already contracted for.
compensatory damages- an award of an amount of money that compensates a complaint the injuries suffered and nothing more.
consequential damages- damage, loss, or injury that does not flow directly and immediately from the act of the party.
incidental damages- reasonable expenses that indirectly result from a breach of contract
liquidated damages- an act of damages, agreed to by both parties and contained in a contract.
nominal damages- damages awarded by a court when a successful plaintiff has proven a legal injury but no actual resulting damages.
punitive damages- damages in excess of losses suffered by the plaintiff awarded to the plaintiff as a measure of punishment for the defendant’s wrongful acts.
speculative damages- are damages claimed by a plaintiff for losses that may occur in the future, but are highly improbable.
III. Minimizing Damages
Mitigation of damages. You Mitigation before you ligate.
Aim: Assignment and Delegation
Rights: the transfer of one’s rights is assignment
assigned-party that assigned
assigner-party that receives assignor’s rights
1. no new consideration is needed to transfer rights.
2. should be in writing to prove the assignment.
B. What rights can be transferred.
1.Most rights can be transferred unless they drastically change the obligation to a contract. Personal services are most likely.
2. payments are the most common types of assignments
C. Delegation- transfer of duties/responsibilities on a contract to a third party (subcontracting).
original party is responsible for the duties of the contract regardless of how many subcontractors he/she hires.
3. Personal services, talents, unique skills can not be delegated in a contract.
1. Breach of Contract
2. assignment- “rights”
3. delegation- “duties”
4. novation- complete transfer
5. “third parties”- privily of contract