Exam 20: Breach of Contract and Remedies

When a written contract does not correctly state the agreement already made but the parties either party make seek a(n):

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is:

The measure of monetary damages when there has been a breach of contract is the sum of money that will place the injured party in the same position that would have been attained if the contract had been performed.

When the contract requires that both parties submit disputes to arbitration,this is an example of a limitation-of-remedies clause.

The party that breaks a contract may be required to pay damages to the other party to compensate for:

Failure to mitigate damages limits recovery to:

The normal remedy for breach of contract where the plaintiff has suffered a loss is compensatory damages.

An injured party who rescinds a contract after having performed services may recover the reasonable value of the performance rendered under restitutionary or quasi-contractual damages.

When the plaintiff seeks the remedy of specific performance,the plaintiff wants the other party to carry out the terms of the contract and not pay damages.

In some cases the court may require specific performance when there is a breach of contract.

A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.

Contract provisions that limit the remedies of the parties are generally unenforceable.

When a party waives compliance with one provision of a contract,the other party may thereafter ignore other provisions of that contract.

Gregory,a comedy writer,entered into a contract with Wessel,a comedian.The contract provided that Gregory would provide Wessel with a 15-minute monologue for his upcoming appearance on Comedy Hour and that Wessel would pay Gregory $250.All performers on Comedy Hour make $500 per appearance.As Gregory knows,the last time Wessel appeared on Comedy Hour he was asked to make special guest appearances at three local comedy clubs using the same monologue.He earned a total of $750 for the three performances.Shortly before Wessel was scheduled to appear on Comedy Hour,Gregory informed him that he was unable to provide the monologue.As a result,Wessel was forced to cancel his appearance.Wessel sued Gregory for breach of contract and requested damages of $1,250.What will result?

An antimodification clause specifies that a waiver to any breach automatically modifies the contract .

Cyril made two contracts.The first was to have his house painted one month from the date of the written contract.The second was for his neighbor's 1957 Ford Thunderbird.Each contract was definite and clear in all respects.As to the house painting,Cyril inquired with the painter as to when the work could begin.The painter explained that he was extremely busy and was not sure if he could fulfill the contract.Cyril flew into a rage and immediately hired someone else who painted the house,but at a higher price.Cyril then sued the painter,claiming that there was an anticipatory repudiation of the contract by the painter. With regard to the automobile purchase contract,after signing the contract,the neighbor decided that she did not wish to sell her car and refused to complete the transaction.Cyril attempted to purchase a similar car elsewhere,but the car was a vintage automobile which was not available on the open market.Cyril sued the neighbor for specific performance of the contract.Discuss the probable outcomes of the lawsuits.

When one party breaks the contract,the contract is said to be breached.

An action for injunctive relief may be granted:

Damages in excess of actual loss,imposed for the purpose of punishing or making an example of the defendant,are known as compensatory damages.

A reservation of rights is an assertion by a party to a contract that even though a tendered performance is accepted,the right to damages for the nonconformity to the contract is reserved.