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Remedies
Remedies in case of breech of contract
Question | Answer |
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What do we mean by remedies in a contract? | When one of the parties breaks the terms of the contract, the other party will be able to gain some sort of compensation for the loss of contract. |
What do we mean by Rejection? Give an example. | A party who is the victim of a breach of contract may reject the entire contract. This could happen in circumstances where the contract fails because of inability to deliver on time, delivering the wrong quantity or delivering goods of poor quality. |
What is meant by Reservation of Title? | A remedy that is often expressly written into the contract is the right of the seller to reserve title until the contract price has been paid. |
What two types of damages are available for a remedy? | Liquidated and unliquidated damages. |
What are liquidated Damages? | In the business world, it is quite common for parties to agree in advance the amount of damages that will be paid in the event of a breach of contract. These are known as liquidated damages |
What are unliquidated damages? | These are damages awarded for breach of contract where there is no prior agreement between the parties as to the amount of damages to be awarded. |
What do we mean by Injuctions? | Order of the court requiring the party at fault not to break the contract |