Damages-contracts

Damages

money awarded as compensatory remedy for a breach of contract

liquidated damages

provisions indicated in the contract in case a breach occurs

When are liquidated damages enforced?

when the amount is reasonable in light of the anticipated or actual loss

nominal damages

if the loss is not provable or if there is no loss

expectation damages

based on the injured party’s interest in having the benefit of the bargain

how to calculate expectation damages (1)

loss in value of the breach party’s performance

how to calculate expectation damages (2)

any incidental or consequential loss suffered by the injured party as a result of the breach

how to calculate expectation damages (3)

any loss avoided because the injured party did not have fully perform

reliance damages

alternative to expectation and is awarded if the injured party relied on the contract but can not prove any lost profits

what do the courts consider

losses and expenditures

avoidability

injured part may not recover damages for any loss that could have been avoided without risk, burden, and humiliation

foreseeability

injured party may not recover damages for loss that the breaching party could not have foreseen

certainty

injured party may not recover damages for loss that cannot be established with reasonable certainty