blaw module 17

What is a material breach?

A breach that breaks the contract. The other side can sue for damages.

What is a non-material breach?

doesn’t break contract, but does provide a basis for incidental damages or offsets

Why do courts award contract damages?

To put the non-breaching party where they would’ve been if the contract had been followed.

What is anticipatory breach?

When someone says (or shows) they won’t perform before performance is due. It’s a material breach.

How can anticipatory breach happen?

By saying they won’t do it (words) or acting like they won’t (conduct).

What are the five types of damages?

Compensatory(CMP)

Consequential(CON)

Nominal(NOM)

Punitive(PUN)

Liquidated(L)

What are compensatory damages for?

To make up for actual losses.

What are consequential damages?

Extra losses that naturally and foreseeably flow from the breach.

What’s the duty to mitigate?

You have to try to reduce your loss (e.g., buy a replacement — aka "cover" under UCC).

What are nominal damages?

A token amount to show there was a breach — even if no real harm ($1, for example).

What are punitive damages?

To punish bad behavior and stop it from happening again. Rare in contracts.

What are liquidated damages?

Pre-agreed damages, used when actual damages are hard to figure out.

What is a waiver in contract law?

Giving up a right you had under the contract.

What is the purpose of equitable remedies?

To return you to where you were before the contract — “status quo ante.”

What are the main equitable remedies?

Reformation

Rescission

Restitution

Injunction

Specific Performance

What are the stages of injunctive relief?

1. Temporary Restraining Order

2. Preliminary Injunction

   1. Permanent Injunction

can parties limit liability in contracts?

Yes, but public policy may block unfair ones.

Who pays attorney fees in contract cases?

Usually, each side pays their own. BUT contracts can say loser pays.

temporary restraining action

A short-term court order that immediately stops a party from doing something to prevent urgent harm before a full hearing can be held.

preliminary injunction

A court order issued before the final trial that temporarily prevents a party from taking an action that could cause irreparable harm during the lawsuit.

permanent injunction

A final court order issued after the trial that permanently prohibits a party from doing (or requires them to do) something because legal remedies (like money) aren't enough.