Contract Law: Breach and Damages

These flashcards cover key terminology related to breach of contract and damages in contract law, as discussed in the lecture.

Breach of Contract

Failure to perform as stated in the contract.

Material Breach

A significant violation of the contract that gives rise to a claim for damages.

Non-material Breach

A minor violation that does not break the contract but may result in incidental damages.

Purpose of Contract Damages

To place the non-breaching party in the position they would have enjoyed had the contract been performed.

Anticipatory Breach

When a party clearly repudiates their obligations under a contract before performance.

Compensatory Damages

Damages awarded to compensate the injured party for losses incurred due to breach.

Consequential Damages

Damages that flow naturally, probably, and foreseeably from a breach.

Mitigation of Damages

The obligation to lessen damages by obtaining substitute goods.

Nominal Damages

Damages awarded in name only, typically a small amount.

Punitive Damages

Damages intended to punish the breaching party and deter future violations.

Liquidated Damages

A pre-agreed amount for damages when actual losses are difficult to determine.

Waiver

To give up or relinquish a right under a contract.

Equitable Remedies

Legal remedies intended to return the injured party to their original position before the contract.

Injunctive Relief

A court order to stop a party from engaging in certain conduct.

Exculpatory Clause

A provision that limits or relieves a party from liability.

Attorneys’ Fees

Under the American Rule, each party pays their own fees unless otherwise agreed.