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Contracts • Remedies for Unexcused Non-Performance
K#155
Legal Definition
Money damages are intended to compensate the plaintiff, not punish the defendant. Types of monetary remedies are Liquid CRIER:
1. Liquidated Damages
2. Consequential Damages
3. Reliance Damages
4. Incidental Damages
5. Expectation Damages
6. Restitution
1. Liquidated Damages
2. Consequential Damages
3. Reliance Damages
4. Incidental Damages
5. Expectation Damages
6. Restitution
Plain English Explanation
A common theme you will hear throughout contract law is that damages are never supposed to be punitive. In other words, the purpose of damages is to try to fix things or make things right, not to punish the other party. The various types of money damages are Liquid CRIER:
1. Liquidated Damages = an amount of money that was previously decided upon and is stated in the contract itself.
2. Consequential Damages = sometimes known as special damages, which are damages that result as a reasonable consequence of the breach.
3. Reliance Damages = when expectation damages are too hard to calculate (too "speculative"), reliance damages are a way for the plaintiff to recover the costs they incurred in reliance of the contract not being breached. In other words, it places the plaintiff back into the position they would have been in if the contract had not ever been formed.
4. Incidental Damages = damages the include the reasonable expenses incurred by the plaintiff to facilitate the contract, such as shipping costs, inspection costs, storage, etc.
5. Expectation Damages = the most standard measure of damages, which is to provide the plaintiff the benefit the bargain. For example, giving the plaintiff enough money so they can purchase the goods or services from someone else.
6. Restitution = compensating the plaintiff with the value of the goods or services that were provided in order to prevent unjust enrichment.
1. Liquidated Damages = an amount of money that was previously decided upon and is stated in the contract itself.
2. Consequential Damages = sometimes known as special damages, which are damages that result as a reasonable consequence of the breach.
3. Reliance Damages = when expectation damages are too hard to calculate (too "speculative"), reliance damages are a way for the plaintiff to recover the costs they incurred in reliance of the contract not being breached. In other words, it places the plaintiff back into the position they would have been in if the contract had not ever been formed.
4. Incidental Damages = damages the include the reasonable expenses incurred by the plaintiff to facilitate the contract, such as shipping costs, inspection costs, storage, etc.
5. Expectation Damages = the most standard measure of damages, which is to provide the plaintiff the benefit the bargain. For example, giving the plaintiff enough money so they can purchase the goods or services from someone else.
6. Restitution = compensating the plaintiff with the value of the goods or services that were provided in order to prevent unjust enrichment.
Visual Aids
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