第二章13违约的补救方法.ppt

Chapter 2
Breach of Contract and Remedies
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Introduction
mon Remedies:
Damages.
Rescission and Restitution.
Specific Performance.
Reformation.
Recovery Based on Quasi Contract.
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§1: Damages
Compensatory Damages—direct losses.
Sale of Goods: difference between contract and market price.
Sale of Land: specific performance.
Construction Contracts: varies.
Consequential (Special) Damages—foreseeable losses.
Breaching party is aware or should be aware, cause the injury party additional loss.
Case : Hadley v. Baxendale (1854).
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Damages
Punitive Damages—punish or deter future conduct.
Generally not available for mere breach of contract.
Usually tort (., fraud) is also involved.
Nominal Damages—no financial loss.
Defendant is liable but only a technical injury.
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Mitigation of Damages
When breach of contract occurs, the innocent injured party is held to a duty to reduce the damages that he or she suffered.
Duty owed depends on the nature of the contract.
Case : Fujitsu Ltd. v. Federal Express Corp. (2001).
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Liquidated Damages
Liquidated Damages.
A contract provides a specific amount to be paid as damages in the event of future default or breach of contract.
Penalties.
Specify a certain amount to be paid in the event of a default or breach of contract and are designed to penalize the breaching party.
Case : Green Park Inn v. Moore (2002).
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§2: Rescission and Restitution
Rescission.
A remedy whereby a contract is canceled and the parties are restored to the original positions that they occupied prior to the transactions.
Restitution.
Both parties must return goods, property, or money previously conveyed.
Note: Rescission does not always call for restitution. Restitution is called for in some cases not involving rescission.
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§3: Specific Performance
Equitable remedy calling for the performance of the act promised in the contract.
Remedy in cases where the consideration is:
Unique (land);
Scarce; or
Not available remedy in contracts fo