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What are the Remedies available to an Aggrieved Party in case of Fraud?
Wiki User
∙ 13y ago
InterestsExpectation Interest - putting the aggrieved party in as good as position as if the breaching party had performed (often money damages).
Reliance Interest - losses caused by reliance on the contract (often consequential damages).
Restitution Interest - having the interest restored to the aggrieved party (often in cases of fraud)
- Mitigating Damages
In all breach of contract situations, it is the duty of the aggrieved party to take steps to mitigate, or limit the damages as much as possible. He just cannot sit back and watch the damages accumulate.
Money DamagesMoney damages for a direct loss, one that is directly caused by the breach recoverable by the aggrieved party is the usual method of calculation. If there is something wrong with the new car, the buyer should get damages to compensate him for the loss of value. This is known as compensatory damages.
Loss of value is the difference between the value of the promised performance of the breaching party and the value of the actual performance. To calculate such damages, you can compare the value of the defective item as opposed to a proper item, or the extra costs involved to repair the item.
ex) Bought a car. The car has problem in the trasmission.
1) Loss of value: The less amount of the value of the car will be the damage
2) Cost of replacement: the trasmission replacement cost will be the damage
Loss of value plus incidental damages plus consequential damages minus any savings equals the compensatory damages.
Incidental damagesCosts such as storage, transportation or any damages incidental to the breach.ex) Towing the car that didn't work because of the transmission problem.
This can be a plus or minus depending on the difference of the situations.
Consequential DamagesOn the other hand, damages that are consequential, that is, indirect damages resulting from the breach such as lost profits, are generally not recoverable, unless they were foreseeable. If the breaching knew or should have known that the new computer system had to be in working order on a given date so that the firm could handle a shipment of orders, then the damages for lost business can be recovered. Often this concept is part of Reliance Damages.ex) Couldn't go to work to handle the car situation and was not paid for the day.
Punitive DamagesOther types of damages such as punitive damages, which are damages above what was actually lost, which are used to punish the breaching party, are usually not collected. If there is some tortuous conduct associated with the breach, then some courts may allow such damages. Nominal DamagesIf no damages result from the breach, the aggrieved party can collect nominal damages, usually a small sum. RescissionWhen one party engages in fraud or misrepresentation, the other party has the option of rescinding, that is terminating, the contract due to the breach. If that innocent party has not performed yet, there will be minimal, if any damages. But if that party has already performed, he is entitled to damages arising out of that performance (reasonable costs under quasi-contract theory). The standard usually is the difference between what was promised and what was received.- Good faith is important to have rescission as a remedy
ex) If the buyer of the problematic car drove the car to work it's ok. If he drove the car to entertain, it's not ok.
If the rescinding party has property of the other, he must restore that property to the other party undamaged. If he cannot, he cannot rescind, just sue for damages.
Specific PerformanceUnder special circumstances, the courts may order a contract enforced, rather than just awarding damages to the victimized party.
Such a contract must be unique and damages must be inadequate to put the innocent party in as good a position as if it would be performed. Examples, such as contracts for antiques, rare items, land.
It is up to the court to grant this remedy and it will not if:
1. Enforcement would be a hardship on the breaching party.
2. Not unique.
3. Adequate money award can be determined.
4. Illegal or fraudulent or unconscionable.
5. Where there was an unreasonable delay in bringing suit.
Contracts for personal services are never entitled to specific performance. (13th Amendment involuntary servitude).
ex) A model made material breach of a contract with an agency. She made a contract that has "extra ordinary clause." Still, the court ruled against the employer because every model had to sign the same clause. It was stunning rulling and that laweyers efforts to put those legal clauses back fired.
InjunctionA court order compelling a party to do or not to do an action. In certain kinds of breach cases, specifically those involving personal service contracts, a court can issue an injunction preventing a star employee from joining a rival. Must be a unique and extroadinary person, such as a star athlete, entertainer. (But the employer can't make the employee come back.)
Liquidated Damages ClausesA contract may contain a provision in which the parties agree in advance to the damages to be paid in event of a breach. Such a clause is known as a liquidated damages clause.
Only if the damages set forth in the clause are reasonable (and not excessive) will such a clause be enforced. If the amount is excessive, it is deemed a penalty and rendered unenforceable.
A contracts with B to write a musical score for A's lyrics to a Broadway show for a sum of $100,000 by December 1. A clause that fixes damages of $500 for each day the score is late will probably be upheld.
If clause had damages of $10,000 a day it will be held void as a penalty. (And gets NOTHING!)
RestitutionThe act of returning the consideration to the aggrieved party. Usually, if one party totally or materially breaches the contract.
Wiki User
∙ 13y ago
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What do you call the aggrieved party in a civil case?
The aggrieved party in a lawsuit is the plaintiff
What is the difference between the remedy available for fraud and the remedy available for misrepresentation?
Remedy for fraud is criminal while remedy for misrepresentation is of civil nature. Fraud deprives one party and benefit other party while misrepresentation may or may not have an impact on either party.
What does it mean when you offer your condolences?
It means to send sympathetic support to an aggrieved party for their loss, usually a death in their family.
Is it possible to detect first party fraud?
Yes it is possibel to detect first party fraud As so many soft wares are found.
Can a registered partition deed be revoked if all the parties to the suit does not give consent to the order?
Possible with the consent of all beneficiaries. Even if revocation is not possible, in certain countries and in certain circumstances, the aggrieved party can proceed in the court of law, where the decree will be made in favour of the aggrieved party if all the parties to the suit consent to the order.
Why will the courts allow an innocent party to collect damages in the case of fraud?
The innocent party has to collect damages because if fraud happens the innocent party won't be able to pay the judge for taking the case.
What is the primary goal of compensatory damages?
To restore, or 'make whole' the aggrieved party. . . as opposed to punitive damages which are intended to punish the violator/respondant.
What are the remedies for non performance of a contract?
Contract law is a very complicated area of law. The answer depends on the contract, the circumstances of the breach and state laws. Remedies can include compensatory damages, consequential damages, punitive damages and a court order that requires performance exactly as outlined in the contract. You can read more about it at the related link.
Will chase deposit a 21000 third party check?
No they will not. Most likely, a third party check is fraud
When did election fraud start?
Election fraud started as early as when voting started. Voting Fraud is voting for someone or messing with the machines to swing towards a certain party. Each year we see a increase in voting fraud.
What remedies became available under the Sherman Antitrust Act?
When an injured party or the government filed suits, the courts could order the guilty firms to stop their illegal behavior or the firms could be dissolved.
When do you raise a claim of fraudulent misrepresentation?
From the moment the fraud is discovered by the aggrieved party he can raise an actionable claim. This is however subject to the time factor as the maxim 'delay defeats equity' comes into play here. generally, when it comes to misrepresentation lapse of time affects recission which is the remedy available at law. It can be assumed to be an evidence of affirmation {sometimes referred to as the doctrine of laches}.see Leaf v. International galleries where leafs claim was barred by lapse of time even though he acted promptly on discovering the fraud and could not in that situation be regarded as having affirmed. It is however noteworthy, that where fraud is alleged, lapse of time has no effect as long as the action is brought within six years of the time the fraud was, or with reasonable diligence could have been discovered. {see S. 32 Limitation Act 1980}(Applegate v. moss 1970 and King v. parsons 1973)
