Breach of Contract

remedy

an action taken to enforce a right or to get damages for an injury

specific performance

when the courts command the breaching party to complete what was promised in the contract

waiver

when one party gives up contractual rights

offset

an action to recover damages

liquidation

damages that are written within the contract

nominal damages

smaller damages that are awarded to the plaintiff despite not incurring any real injury due to the breach

limitation

a court order to do or not to do something to prevent future damages from occurring

bankruptcy

a legal procedure where a debtor's assets are divided among its creditors

punative damages

damages designed to punish

clean hands

the legal term given to the plaintiff if they are without blame

material

another name given for a major breach of contract

rescission

when the court cancels the contract

restitution

the recovering of money or property by the injured party

consequential damages

damages given for future foreseeable injuries caused by the breach

compensatory damages

an award that compensates the non-breaching party for losses resulting from a breach

breach of contract

failure to provide complete performance of contractual obligations

major/material breach

it means that it is signifiant and makes the contract either impossible or pointless

minor breach

the breach is not as significant and can be easily corrected to complete the original contract

what happens if the courts determine there has been a breach of contract?

three remedies - recission and restitution, money damages, specific performance

money damages

pay to compensate the person who has been violated by the breach of contract

rescission and restitution

recession cancels the contract and restitution returns whatever has been received

how the court determines what breach occurred

how much of the contract was fulfilled before the breach. whether the breach was intentional, negligent, or the result of an innocent mistake. how certain it is that the bp will perform the rest of the contract. how much of the benefit of the contract the non-bp has received despite the breach. the extent to which the innocent party can be compensated. how difficult it would be on the bp if the court were to decide that the breach was severe and that the innocent party was no longer required to fulfill their side of the contract