Damages for Breach of Contract

Order instructions


When one party breaches a contract, damages come in to play as a way to compensate the nonbreaching party for their lose on the bargin. When the court looks to provide damages to one party they are looking to best suit that party in what they have lost. There are four main categories of damages.

  1. Compensatory- These are damages provided to help cover lose and costs. They are only to cover any damages that were actually sustained from the lose in the bargin. They are simply there to replace what was lost. Some categories that fall under compensatory damages are contracts that deal with the sale of goods, sale of land, or contracts dealing with contruction.
  2. Consequential- These are damages that are foreseeable from a party breaching contract. These arise from circumstances other than the contract itself, they are generated from the consequences themselves as a result of the breach. An example of this would be a seller not delivering good to buyer, knowing very well that the buyer needed to turn around and sell the goods right away.
  3. Punitive- These damages are also know as exeplary damages, and are not always rewarded to breach of contract cases. Punitive damages are more common when dealing with criminal subject matter because they are set forth to seek out penalties.
  4. Nominal- These damages occur when there is no actual damage or financial lose from the breach, this relates more to technical loses. These damages are often small, they can even be as small as a dollar, but are put in place to establish that one party did do wrong

Matthew M

RE: Damages for Breach of Contract

I also learned about exemplary damages  – they may be awarded when the defendant acted in a malicious, violent, oppressive, fraudulent, wanton or grossly reckless way in causing the special and general damages to the plaintiff.


Bruno #1

When Bruno entered in to the contract with X Entertainment, he was signing a contract stating he would perform based on the terms that X Entertainment listed. This meant that Bruno was bound to this contract, without performing the stunts he wouldn’t get paid, and it would set the release date back causing X Entertainment to lose out on the summer movie market. When Bruno go into an argument with one of the employees from X Entertainment, and refused to work, X Entertainment looked to seek specific performance on the contract. I believe that they will not succeed in doing so. This in a sense would be forcing someone to use a personal talent againt his or her own will, otherwise considered servitude. Courts will not enforce trying to force somone to do something they do not want to do. It is unfortuante but I do not believe that X Entertainment would win in this case, they cannot force someone into doing something.

Matthew M

RE: Bruno #1

Personal servitude is a servitude granting rights in property to a particular person. Such servitudes are personal in nature and ordinarily terminate on the servient holder’s death. – So, I’m not sure if servitude applies to this case, but again I could be wrong.


Module 12

In what situations will specific performance apply?  When will it not apply?

The most common reason courts grant specific performance is that the subject of the contract is unique, when it’s not merely a matter of money or where the true amount of damages is unclear. When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser’s situation.

When will it not apply? – Sale of goods rather than land?


Val’s Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herb grower, if an independent organization inspects the crop and certifies that it contains no pesticide or herbicide residue. Val’s has a contract with several restaurant chains to supply pesto and intends to use Sun Farms’ basil in the pesto to fulfill these contracts. When Sun Farms is preparing to harvest the basil, an unex- pected hailstorm destroys half the crop. Sun Farms attempts to purchase additional basil from other farms, but it is late in the season, and the price is twice the normal market price. Sun Farms is too small to absorb this cost and immediately notifies Val’s that it will not fulfill the contract. Using the information presented in the chapter, answer the following questions. 1. Suppose that Sun Farms supplies the basil that survived the storm but the basil does not pass the chemical-residue inspection. Which concept discussed in the chapter might allow Val’s to refuse to perform the contract in this situation?



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