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B Law Unit 2 Ch 14

Quiz yourself by thinking what should be in each of the black spaces below before clicking on it to display the answer.
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Term
Definition
incidental damages   Damages that compensate for expenses directly incurred because of a breach of contract, such as those incurred to obtain performance from another source.  
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consequential damages   Foreseeable damages that result from a party’s breach of contract but are caused by special circumstances beyond the contract itself.  
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nominal damages   A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.  
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mitigation of damages   The requirement that a plaintiff do whatever is reasonable to minimize the damages caused by the defendant.  
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liquidated damages   An amount, stipulated in a contract, that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.  
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penalty   A contract clause that specifies a certain amount to be paid in the event of a default or breach of contract but is unenforceable because it is designed to punish the breaching party rather than to provide a reasonable estimate of damages.  
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restitution   An equitable remedy under which a person is restored to his original position prior to loss or injury, or placed in the position he would have been in had the breach not occurred.  
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specific performance   An equitable remedy in which a court orders the parties to perform as promised in the contract. Normally granted only when the legal remedy (monetary damages) is inadequate.  
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Created by: leighg2011
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