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BREACH OF CONTRACT
1. Introduction:
When a party breaks the contract by refusing to perform his promise breach of contract takes place. The breach of contract means to violate the contract. Every breach gives rise to a claim for damages and may also give rise to other remedies.
2. Definition:
Breach of contract is failure to perform the obligation under the contract.
4. Breach of Contract/ Damages:
i. Ordinary Damages:
When one party breaches a contract the other party may be entitled to damages.
a. Recovery for loss of Profit:
Generally, attorney fees are not recoverable for breach of contract reasonable fees can be granted.
b. Recovery of Interest:
Emotional reactions peculiar to a particular individual that might flow from a breach of a contract are too subjective and variable to be contemplated prior to a breach of contract are generally not recoverable.
c. Loss of Profits:
The injured party may recover the loss of profits if he or she can establish them with reasonable certainty.
d. Interest:
Interest at the legal rate is recoverable from the time of breach where the amount of money is liquidated.
ii. Special Damages:
These damages arise under some special circumstances affecting the plaintiff. These arise when a party makes a special contract through which he expects a large profits and such profits are likely to be lost through the breach of contract.
iii. Exemplary Damages:
Exemplary or punitive damages are awarded to one party in order to punish the other party and to discourage others from similar wrongful conduct.
iv. Liquidated Damages:
The parties may stipulate in the contract that a certain amount specified is not so excessive as to be in the form of apenalty the clause will be valid.
v. Vindictive Damages:
These are neither awarded to compesate the aggrieved party nor to punish the guilty party.
vi. Expectancy Damages:
It is a type of compensation awarded for the loss of what a person reasonably anticipated from a transaction that was not completed. It is also termed as expectancy damages.
vii. Rescissory Damages:
It means damages contemplated to restore a plaintiff to the position occupied before the defendant's wrongful acts.
1. Introduction:
When a party breaks the contract by refusing to perform his promise breach of contract takes place. The breach of contract means to violate the contract. Every breach gives rise to a claim for damages and may also give rise to other remedies.
2. Definition:
Breach of contract is failure to perform the obligation under the contract.
4. Breach of Contract/ Damages:
i. Ordinary Damages:
When one party breaches a contract the other party may be entitled to damages.
a. Recovery for loss of Profit:
Generally, attorney fees are not recoverable for breach of contract reasonable fees can be granted.
b. Recovery of Interest:
Emotional reactions peculiar to a particular individual that might flow from a breach of a contract are too subjective and variable to be contemplated prior to a breach of contract are generally not recoverable.
c. Loss of Profits:
The injured party may recover the loss of profits if he or she can establish them with reasonable certainty.
d. Interest:
Interest at the legal rate is recoverable from the time of breach where the amount of money is liquidated.
ii. Special Damages:
These damages arise under some special circumstances affecting the plaintiff. These arise when a party makes a special contract through which he expects a large profits and such profits are likely to be lost through the breach of contract.
iii. Exemplary Damages:
Exemplary or punitive damages are awarded to one party in order to punish the other party and to discourage others from similar wrongful conduct.
iv. Liquidated Damages:
The parties may stipulate in the contract that a certain amount specified is not so excessive as to be in the form of apenalty the clause will be valid.
v. Vindictive Damages:
These are neither awarded to compesate the aggrieved party nor to punish the guilty party.
vi. Expectancy Damages:
It is a type of compensation awarded for the loss of what a person reasonably anticipated from a transaction that was not completed. It is also termed as expectancy damages.
vii. Rescissory Damages:
It means damages contemplated to restore a plaintiff to the position occupied before the defendant's wrongful acts.