Assessment No. 3
Types of Remedies:
Compensatory - A money award equivalent to the actual value of injuries or damages sustained by the aggrieved party. When a contract has been breached, the court orders the party that breached to pay the amount of direct losses done to innocent party.
Consequential - Special damges that compensate for a loss that is not direct or immediate (for example, lost profits0. The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them. The party that breached the contract must reimburse the innocent party for the indirect losses even if they were foreseeable damages.
Punitive - Money damages that may be awarded to aplaintiff to punish the defendant and deter future similar conduct. A monetary award the court orders on the guilty party to punish them for a breach of contract.
Nominal - A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered or when the plaintiff is unable to tshow such loss with sufficient certainty. When the plaintiff cannot prove damages or no damages were done, the court may provide a small amount of money, “often one dollar”.
Liquidated - An amount, stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a beach. For the court to order this remedy, the contract must be in writing. Liquidation takes place of compensatory and consequential remedies. In the contract, it must say “if contract is breached...” breaching party must pay this much to the other party.
Rescission - A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties, by their conduct, or by court decree. This remedy requires both