Understanding Business Law: Damages, Remedies, and Restitution, Slides of Commercial Law

Download Understanding Business Law: Damages, Remedies, and Restitution and more Slides Commercial Law in PDF only on Docsity! Business Law and the Regulation of Business Remedies Docsity.com Topics Covered in this Chapter A. Monetary Damages B. Remedies in Equity C. Restitution D. Limitations on Remedies Docsity.com Damages for Misrepresentation • Benefit-of-the-Bargain Damages – difference between the value of the fraudulent party's performance as represented and the value the defrauded party received. • Out-of-Pocket Damages – difference between the value given and the value received. • Punitive Damages – are generally not recoverable for breach of contract. • Liquidated Damages – reasonable damages agreed to in advance by the parties to a contract. Docsity.com Limitations on Damages • Foreseeability of Damages – potential loss that the party now in default had reason to know of when the contract was made. • Certainty of Damages – damages are not recoverable beyond an amount that can be established with reasonable certainty. • Mitigation of Damages – injured party may not recover damages for loss he could have avoided by reasonable effort. Docsity.com Remedies in Equity • Availability – only where there is no adequate remedy at law. • Types: – Specific Performance – court decree ordering breaching party to render promised performance. – Injunction – court order prohibiting a party from doing a specific act. – Reformation – court order correcting a written contract to conform with the original intent of the contracting parties. Docsity.com Limitations on Remedies • Election of Remedies – if remedies are not inconsistent, a party injured by a breach of contract may seek more than one • Loss of Power of Avoidance – a party with the power to avoid a contract may lose that power by: – affirming the contract – delaying unreasonably in exercising the power of avoidance – being subordinate to intervening rights of 3rd parties Docsity.com Contract Remedies No Remedy Equitable Remedies may be available Legal Remedies are available Compensatory Damages Restitution Reliance Damages Has the contract been breached? Are legal remedies adequate? Is there a provision for reasonable liquidated damages? Recovery of liquidated damages Yes No Yes Yes No No Docsity.com