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Remedies for Breach of Contract - Coggle Diagram
Remedies for Breach of Contract
The proof to establish entitlement
1) Actual loss that has been
caused by the breach
2) Type of loss is recognized as
giving an entitlement to compensation
3) Loss is not too remote
Remedies definition
To achieve justice in any
matter in which legal rights
are involved
The remedies
Rescission
When contractual duties of both
parties terminated by court
Used when parties enter into a
contract because of mistake, fraud, undue influence or duress and the only way to do justice is to terminate the contract
Reformation
Court reforms or changes a contract
to correct any inequities.
Terms of contract may be rewritten
to do justice
Restitution
To restore the injured party to
the position occupied before
the contract. Usually use when
contract is voided by court
because of defendant's lack
Specific performance
The breaching party has to perform their duties as specified by the contract and it is used when money damages are not adequate to compensate the plaintiff
Involve in giving a piece of land or valuable item to the plaintiff
Money damages
Compensatory
damages
Cover the loss incurred by
the non-breaching party
General damages
Cover the loss which was directly
connected to the breach of contract
(common type of damages)
Special damages
Cover any loss because of special circumstances or conditions which the breaching party knew about when the contract was made
Punitive
damages
Awarded to punish the wrongdoer
for egregious behavior and to deter
others from committing similar acts
(addition to compensatory damages)