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Damages are designed to ensure a just outcome in the event of a breached contract. Each party has an interest in the contract being completed and benefits from it in terms of profit, property, and or specific job performance.
For example: A major motion picture company hires a famous actress to star in their movie. She signs a contract agreeing to certain salary in exchange for her performance in the movie. The actress later voids her contract to star in another movie. The motion picture company should receive damages because it has an expectation interest and a non-equitable interest in the actress. This means that the motion picture company expected her to complete the movie as specified in the contract (and now must hire a new actress at their expense). It also means that the motion picture company also has lost the specific performance of the famous actress which may cause a loss in box office revenue (perhaps it won't be as critically acclaimed with out the famous actresses fame). Clearly, the motion picture company has been damaged by the breach of contract and deserves justice.
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Damages for breach of contract should only be awarded where they arise naturally from the contractis known as?
This principle is known as the rule of foreseeability or the principle of direct damages. It states that damages for breach of contract should only be awarded if they are the direct and foreseeable result of the breach. Indirect or consequential damages that are not a natural consequence of the breach are generally not recoverable.
Define the term ordinary damages?
Such damages as naturally and generally would result from a breach of contract.
What is theDifference between breach of contract and discharge of a contract?
breach is a form of discharge. Generally, a discharge is when a contract ends for any reason. A breach is when one of the parties does not perform under the contract. Breach could lead to discharge, rescission, or damages, or nothing.
What is Breach of contract of carriage and damages?
Means failure of a party to fulfill his obligations under the contract
What do you need to have to file a breach of contract?
# A contract # A reasonable belief that the other party has materially violated that contract # Damages # An Attorney
On what basis are compensatory damages for breach of contract calculated?
Normally, compensatory damages are measured by the party's expectancy, or what the parties should have reasonably foreseen as flowing from the breach. Parties may also receive reliance damages for the expenses caused by relying on the breached contract or restitution damages for the expense of assets conferred on the breaching party.
What is the difference between a breach of warranty and a breach of a condition?
A warranty is less important than a condition and does not impact on the main purpose of the contract. A breach of a warranty entitles the injured party to claim for damages ONLY. They may not repudiate the contract. A condition is a major term that goes to the root of the contract. Such term is essentials to the main purpose of the contract and therefore the injured party is entitled to repudiate the contract as well as make a claim for damages.
Is there a term to describe someone breaching a contract for economic benefit - ie when it is better to pay damages for breach of contract than to continue under it.?
Yes, the term for such a person is "intelligent." The system of contracts and remedies for breach includes the presumptionthat anyone with a "better deal" elsewhere will breach an inefficient contract, provided the risk of damages is outweighed by the potential benefits of the better deal.
What are common and equitable remedy for breach of the contract?
There are several: 1. Recission, where the contract is cancelled, both parties excused, and any advance payments are returned, 2. Reformation, where the contract is altered to reflect what was actually intended, 3. Specific performance, where the court orders that the exact terms of the contract are executed, 4. Compensatory damages, to cover losses incurred as a result of non-performance, 5, Consequential and incidental damages, to cover "forseeable losses" as a result of the breach 6. Punative damages, to punish a person for willfull breach 7. Liquidated damages, those specified in the contract if the terms are not met.
A minor breach of contract discharges a contract?
The innocent party usually has the option to decide whether they would like to continue with the contract or discharge it and go for damages
Can you have a minor arrested for breaking contract?
Generally, you can't have anybody arrested for a breach of contract. The usual remedy is to sue for damages in a civil action.
If you are being sued for subrogation on a co-signed vehicle and need to file a cross-complaint against the primary borrower should you sue for damages breach or breach of contract?
The cosigner did not have a contract with the primary borrower, only with the lender; that being the case the cosigner would sue for his or her financial losses not for a breach of contract.
