Compensation for causing loss or injury through negligence or a deliberate act, or a court's estimate or award of a sum as a fine for breach of a contract or of a statutory duty. Types of damages include (1) General: damages that are presumed in law and follow indirectly from a wrong. They need not be specifically-claimed or proved to have been sustained, and are awarded also where an injury or loss (such as physical pain and mental anguish) cannot be precisely estimated. (2) Special (or specific): damages that are not presumed in law and are a direct result of an action or injury, such as loss of earnings, medical expenses, and repair bills, that can be assessed with fair accuracy. Such damages must be expressly claimed and proved. (3) Nominal: trifling sum awarded where a legal injury has occurred but has not resulted in a significant loss. (4) Substantial: where the aim of a court award is to restore a plaintiff to his or her economic position prior to the injury or loss. (5) Punitive (or exemplary): additional and heavy damages awarded where a court believes a defendant acted in a fraudulent, malicious, reckless, or violent manner, and therefore must be made an example of. (6) Liquidated: damages awarded where a contract provides for an exact sum to paid as compensation in case of a breach of contract, and describes conditions that constitute a breach. (7) Unliquidated: where the court has to decide the sum to be paid as compensation in case of a breach of contract, what constitutes a breach, and whether a breach actually occurred.
Read more: http://www.businessdictionary.com/definition/damages.html#ixzz2Q0Gbr4qf What Types of Damages are Available in a Breach of Contract? Depending on the nature of the breach, you may have several different remedies available to you. The remedies may be subject to reduction or modification if the injured party has also breached the contract. Damages are monetary awards, and they include: * Compensatory Damages: These are damages for a monetary amount that is intended to compensate the non-breaching party for losses due to the breach. The aim is to “make the injured party whole again”. There are two types of compensatory damages: * Expectation Damages: Damages intended to cover what the injured party expected to receive from the contract. Calculations are usually straightforward as they are based on the contract itself or market values. * Consequential Damages: These are intended to reimburse the aggrieved party for indirect damages besides the contractual loss; for example, loss of business profits due to an undelivered machine. They must “flow from the breach”, and be reasonably foreseeable upon entering into the contract. * Liquidation Damages: Damages that are specifically provided for in the contract. These are available when damages may be hard to foresee and must be a fair estimate of what damages might be in case of breach. Determined during contract formation. * Punitive Damages: Intended to punish the breaching actors and to deter them from committing future breaches. Fairly rare in contract cases, though they may be available in certain fraud and tort causes of action that overlap with contract law. * Nominal Damages: These are damages which are awarded when the injured plaintiff does not actually incur a monetary loss. Also rare in contract cases because breaches of contract typically involve some sort of loss to one party. May be available in tort crossover claims. * Restitutionary Damages: These are not really legal damages per se, but rather are an equitable remedy to prevent the breaching party from being unjustly enriched. For example, if one party has delivered goods but the other party failed to pay, they may be entitled to restitutionary damages to prevent the unjust enrichment. What other Breach of Contract Remedies are Available?
Relief for contract breaches can come in two forms: legal damages, which are the...
Please join StudyMode to read the full document