Business Law

Damages

The primary legal remedy for breaches of contract, aimed at making the injured party whole or providing the benefit of the bargain.

Compensatory Damages

Damages that cover direct losses and costs, calculated as the difference between promised and actual performance values.

Consequential Damages

Damages that cover indirect but foreseeable losses, such as lost profits resulting from a breach.

Nominal Damages

Damages that recognize wrongdoing when no actual monetary damage is incurred.

Mitigation of Damages

The requirement for injured parties to take reasonable actions to reduce their damages, such as finding new tenants or seeking similar employment.

Rescission

An equitable remedy that cancels the contract and restores the parties to their pre-agreement positions.

Specific Performance

An equitable remedy that requires the breaching party to perform their contractual duties, often applied in unique item sales.

Complete Performance

When a party performs exactly as agreed in a contract, leaving no room for dispute.

Substantial Performance

When performance is close to complete, providing nearly the same benefits as expected.

Mutual Rescission

An agreement between both parties to cancel a contract.

Novation

The substitution of a new party in a contract, releasing the original party from obligations.

Material Alteration

A significant change to a contract without consent, which can nullify the contract.

Statute of Limitations

Laws that set maximum time limits for bringing legal claims, making time-barred claims unenforceable.

Unilateral Mistake

A mistake made by one party to a contract, generally enforceable unless the other party knew or should have known.

Bilateral Mistake

A mistake made by both parties that can allow for rescission by either party if terms are reasonably interpreted differently.

Fraudulent Misrepresentation

A voidable contract induced by a misrepresentation of a material fact with intent to deceive.

Undue Influence

A situation where one party significantly influences another in the formation of a contract, making it voidable.

Duress

A situation involving threats or actions that preclude the free will of a party to the contract, making it voidable.

Statute of Frauds

Legal requirement that certain contracts must be in writing to be enforceable, including contracts related to marriage, land, and goods over $500.

Third-Party Beneficiaries

Intended beneficiaries to a contract who have enforceable rights, unlike incidental beneficiaries.