Breach of Contract Legal Principles

These flashcards cover key concepts related to breach of contract and legal remedies discussed in the lecture.

What did Hallmark receive as a result of the breach of contract case mentioned in the lecture?

Hallmark received an award of $860,000, which included the full severance of $735,000.

What is the standard measure of compensatory damages for a breach of contract regarding goods or land?

The standard measure is the contractor's lost profits or costs incurred during the contract's performance.

What are consequential or special damages?

These are damages that are not direct results of the lost bargain but are reasonably foreseeable as a result of a breach.

What are nominal damages?

Nominal damages are small sums awarded to a party who has suffered no real loss but whose rights have been violated.

What does the requirement to mitigate damages entail?

It requires the non-breaching party to take reasonable steps to reduce or minimize their losses after a breach.

What is a liquidated damages clause?

A clause that specifies a predetermined amount of damages to be paid in the event of a future breach of contract.

Under what circumstances would a court grant specific performance as a remedy for breach of contract?

Specific performance may be granted for unique goods or unique pieces of land.

Why do courts not typically grant specific performance for personal service contracts?

Because it resembles indentured servitude, which is not condoned by the legal system.

What is rescission in the context of contract law?

Rescission is when a court orders a contract to be undone due to some issue with the contract.

What is quantum meruit?

Quantum meruit is a legal principle regarding recovery for services rendered when there is no contractual breach.