Contract Remedies And Damages
Expert-defined terms from the Professional Certificate in Contract Law for Non-Lawyers course at London School of Planning and Management. Free to read, free to share, paired with a professional course.
Acceptance is a crucial concept in Contract Remedies And Damages, referri… #
Related terms include offer, consideration, and intention to create legal relations. Acceptance can be express or implied, and it must be communicated to the offeror to be effective. For example, if a company offers to sell a product to a customer, the customer's acceptance of the offer creates a binding contract.
Accounting of profits is a remedy available to the innocent party in a br… #
This remedy is often sought in cases where the breach has resulted in the party in breach making a profit, such as in cases of copyright infringement. Related terms include damages, restitution, and equitable remedies.
Anticipatory breach occurs when a party indicates, either through words or actio… #
This can include a statement that they will not perform their obligations under the contract, or an action that makes it impossible for them to perform. Related terms include actual breach, repudiation, and termination. For example, if a company indicates that they will not deliver goods as promised, the other party may treat this as an anticipatory breach and take action to terminate the contract.
Arbitration is a dispute resolution process where a neutral third party h… #
Related terms include mediation, conciliation, and alternative dispute resolution. Arbitration is often used in contract disputes, as it can be a faster and more cost-effective way of resolving disputes than going to court. For example, a contract may include an arbitration clause, which requires the parties to submit any disputes to arbitration.
Assumption of risk is a doctrine that applies when a party has voluntaril… #
This can include risks that are inherent in a particular activity or business. Related terms include duty of care, negligence, and liability. For example, if a person participates in a dangerous sport, they may be deemed to have assumed the risk of injury.
Breach of contract occurs when a party fails to perform their obligations under… #
This can include failing to deliver goods, failing to pay for goods or services, or failing to perform services as promised. Related terms include repudiation, termination, and damages. For example, if a company fails to deliver goods as promised, the other party may sue for breach of contract.
Capacity to contract refers to the ability of a party to enter into a bin… #
This can include the ability to understand the terms and conditions of the contract, as well as the ability to make decisions about whether or not to enter into the contract. Related terms include minority, mental incapacity, and undue influence. For example, a person who is under the age of majority may not have the capacity to enter into a contract.
Causation is a requirement for a claim in damages, referring to the need… #
Related terms include remoteness, foreseeability, and mitigation. For example, if a company breaches a contract and the other party suffers a loss, they must show that the breach caused the loss in order to claim damages.
Certainty of terms is a requirement for a contract to be enforceable, ref… #
Related terms include completeness, workable, and reasonable. For example, a contract that is too vague or uncertain may not be enforceable.
Collateral warranty is a type of contract where a party provides a warran… #
Related terms include guarantee, indemnity, and undertaking. For example, a manufacturer may provide a collateral warranty in respect of the quality of their products.
Compensatory damages are a type of damages that aim to compensate the inn… #
Related terms include expectation damages, restitutionary damages, and punitive damages. For example, if a company breaches a contract and the other party suffers a financial loss, they may be awarded compensatory damages to compensate them for their loss.
Condition precedent is a term or condition that must be fulfilled… #
Related terms include condition subsequent, promissory condition, and contingent condition. For example, a contract may include a condition precedent that requires the other party to pay a deposit before the contract can be performed.
Consideration is a fundamental concept in contract law, referring to the… #
Related terms include bargain, benefit, and detriment. For example, if a company promises to deliver goods in exchange for a payment, the payment is the consideration for the contract.
Consequential damages are a type of damages that aim to compensate the in… #
Related terms include indirect damages, special damages, and incidental damages. For example, if a company breaches a contract and the other party suffers a loss of business as a result, they may be awarded consequential damages to compensate them for their loss.
Contract interpretation is the process of interpreting the terms and cond… #
Related terms include construction, meaning, and intent. For example, if a contract includes a clause that is unclear or ambiguous, the court may need to interpret the clause in order to determine its meaning.
Contractual liability refers to the liability of a party under a contract #
Related terms include tortious liability, statutory liability, and vicarious liability. For example, if a company breaches a contract, they may be liable for any loss or damage suffered by the other party.
Counterclaim is a claim made by a defendant in a lawsuit, which seeks to… #
Related terms include set-off, counter-suit, and cross-claim. For example, if a company is sued for breach of contract, they may make a counterclaim against the other party for any loss or damage they have suffered.
Covenant is a promise or agreement to do or not do something, whic… #
Related terms include undertaking, guarantee, and warranty. For example, a contract may include a covenant that requires a party to maintain the confidentiality of certain information.
Damages are a remedy available to the innocent party in a breach of contr… #
Related terms include compensation, restitution, and indemnity. For example, if a company breaches a contract and the other party suffers a financial loss, they may be awarded damages to compensate them for their loss.
Declaratory relief is a type of remedy that seeks a declaration or statem… #
Related terms include declaratory judgment, declaration, and interpretation. For example, if a company is unsure about their obligations under a contract, they may seek declaratory relief to clarify their rights and obligations.
Discharge by agreement occurs when the parties to a contract agree to discharge… #
Related terms include discharge by performance, discharge by breach, and discharge by frustration. For example, if a company and a customer agree to cancel a contract, the contract is discharged by agreement.
Discharge by frustration occurs when a contract is discharged or terminated due… #
Related terms include frustration, impossibility, and force majeure. For example, if a company is unable to deliver goods due to a natural disaster, the contract may be discharged by frustration.
Dispute resolution refers to the process of resolving disputes or disagre… #
Related terms include arbitration, mediation, and negotiation. For example, if a company and a customer have a dispute about a contract, they may use dispute resolution to resolve their differences.
Duress is a type of undue influence that involves the use of threats or c… #
Related terms include undue influence, coercion, and pressure. For example, if a company uses threats to induce a customer to enter into a contract, the contract may be voidable due to duress.
Equitable remedies are a type of remedy that is available in cases where… #
Related terms include specific performance, injunction, and rescission. For example, if a company breaches a contract and the other party seeks an order requiring the company to perform the contract, the court may grant an equitable remedy such as specific performance.
Estoppel is a doctrine that prevents a party from denying or asserting so… #
Related terms include promissory estoppel, proprietary estoppel, and estoppel by conduct. For example, if a company makes a promise to a customer and the customer relies on that promise, the company may be estopped from denying the promise.
Exclusion clause is a clause in a contract that seeks to exclude or limit… #
Related terms include exemption clause, limitation clause, and exclusion of liability. For example, if a company includes an exclusion clause in a contract that excludes their liability for any consequential loss or damage, the clause may be effective in limiting their liability.
Expectation damages are a type of damages that aim to put the innocent pa… #
Related terms include compensatory damages, restitutionary damages, and punitive damages. For example, if a company breaches a contract and the other party suffers a financial loss, they may be awarded expectation damages to compensate them for their loss.
Force majeure is a doctrine that applies when a contract is discharged or… #
Related terms include frustration, impossibility, and discharge by frustration. For example, if a company is unable to deliver goods due to a natural disaster, the contract may be discharged due to force majeure.
Frustration occurs when a contract is discharged or terminated due to an unfores… #
Related terms include force majeure, impossibility, and discharge by frustration. For example, if a company is unable to deliver goods due to a natural disaster, the contract may be frustrated.
Good faith is a principle that requires parties to act honestly and fairl… #
Related terms include fair dealing, honesty, and reasonableness. For example, if a company acts in good faith when negotiating a contract, they may be more likely to reach a mutually beneficial agreement.
Implied term is a term that is not expressly stated in a contract, but is… #
Related terms include implied condition, implied warranty, and implied obligation. For example, if a contract does not include a term that requires a party to act in good faith, the court may imply such a term in order to give effect to the contract.
Injunction is a type of equitable remedy that seeks to restrain a party f… #
Related terms include prohibitory injunction, mandatory injunction, and interim injunction. For example, if a company breaches a contract and the other party seeks an order requiring the company to stop breaching the contract, the court may grant an injunction.
Intention to create legal relations is a requirement for a contract to be… #
Related terms include social and domestic agreements, commercial agreements, and contractual intention. For example, if a company and a customer negotiate a contract, they must intend to create a legally binding agreement in order for the contract to be enforceable.
Interpretation of contracts refers to the process of interpreting the ter… #
Interpretation of contracts refers to the process of interpreting the terms and conditions of a contract.
Limitation of liability is a clause in a contract that seeks to limit the… #
Related terms include exclusion clause, limitation clause, and exclusion of liability. For example, if a company includes a limitation of liability clause in a contract that limits their liability for any consequential loss or damage, the clause may be effective in limiting their liability.
Liquidated damages are a type of damages that are specified in a contract… #
Related terms include penalty clause, liquidated damages clause, and agreed damages. For example, if a contract includes a liquidated damages clause that specifies the amount to be paid in the event of a breach, the clause may be effective in limiting the liability of the party in breach.
Mitigation of loss refers to the duty of a party to take reasonable steps… #
Related terms include duty to mitigate, mitigation of damages, and avoidable loss. For example, if a company breaches a contract and the other party suffers a financial loss, the other party may have a duty to mitigate their loss by taking reasonable steps to minimize their damage.
Negotiation is a process of discussing and agreeing the terms and conditi… #
Related terms include bargaining, mediation, and agreement. For example, if a company and a customer negotiate a contract, they may engage in a process of discussion and agreement in order to reach a mutually beneficial contract.
Nominal damages are a type of damages that are awarded when a breach of c… #
Related terms include symbolic damages, token damages, and minimal damages. For example, if a company breaches a contract, but the other party has not suffered any actual loss or damage, the court may award nominal damages as a symbolic award.
Novation is a process of replacing an existing contract with a new contra… #
Related terms include substitution, replacement, and variation. For example, if a company and a customer agree to replace an existing contract with a new contract, the novation may be effective in replacing the existing contract.
Offer is a proposal or invitation to enter into a contract, which… #
Related terms include invitation to treat, proposal, and acceptance. For example, if a company makes an offer to a customer to supply goods, the customer must accept the offer in order to create a binding contract.
Penalty clause is a clause in a contract that specifies a penalty or fine… #
Related terms include liquidated damages clause, penalty, and fine. For example, if a contract includes a penalty clause that specifies a fine to be paid in the event of a breach, the clause may be effective in deterring the party from breaching the contract.
Performance of a contract refers to the act of fulfilling the obligations… #
Related terms include execution, implementation, and completion. For example, if a company delivers goods as promised, they have performed their obligations under the contract.
Privity of contract refers to the relationship between the parties to a c… #
Related terms include privity of estate, privity of interest, and third party rights. For example, if a company and a customer enter into a contract, they have a privity of contract that creates a legally binding agreement between them.
Punitive damages are a type of damages that aim to punish the party in br… #
Related terms include exemplary damages, vindictive damages, and penal damages. For example, if a company breaches a contract and the other party suffers a financial loss, the court may award punitive damages to punish the company for their breach.
Quantum meruit is a doctrine that applies when a party has provided goods… #
Related terms include quasi-contract, implied contract, and restitution. For example, if a company provides goods to a customer without an express agreement as to the price, the court may imply a contract and award payment on a quantum meruit basis.
Reasonable time is a concept that refers to the amount of time that is re… #
Related terms include reasonable notice, reasonable opportunity, and reasonable period. For example, if a contract requires a party to perform a particular task within a reasonable time, the court may need to determine what constitutes a reasonable time in order to determine whether the party has breached the contract.
Recovery of debt refers to the process of recovering a debt or payment th… #
Related terms include debt collection, debt recovery, and payment. For example, if a company is owed a debt by a customer, they may need to take action to recover the debt.
Remedies are the means by which a party can enforce their rights under a… #
Related terms include damages, injunction, and specific performance. For example, if a company breaches a contract, the other party may seek remedies such as damages or an injunction to enforce their rights.
Remoteness of damage refers to the requirement that the damage or loss su… #
Related terms include foreseeability, causation, and mitigation. For example, if a company breaches a contract and the other party suffers a financial loss, the court may need to determine whether the loss was reasonably foreseeable in order to determine whether the company is liable.
Repudiation occurs when a party indicates, either through words or actions, that… #
Related terms include anticipatory breach, termination, and discharge. For example, if a company indicates that they will not deliver goods as promised, the other party may treat this as a repudiation and take action to terminate the contract.
Rescission is a remedy that seeks to cancel or rescind a contract, often… #
Related terms include cancellation, termination, and discharge. For example, if a company breaches a contract and the other party seeks to rescind the contract, the court may grant the remedy and cancel the contract.
Restitution is a remedy that seeks to restore the parties to the position… #
Related terms include restitutionary damages, equitable restitution, and quantum meruit. For example, if a company breaches a contract and the other party seeks restitution, the court may order the company to restore the parties to their pre-contractual position.
Restraint of trade refers to a clause in a contract that seeks to restric… #
Related terms include non-compete clause, restrictive covenant, and trade restraint. For example, if a company includes a restraint of trade clause in a contract that restricts a customer's freedom to trade with other companies, the clause may be effective in restricting the customer's ability to compete.
Specific performance is a remedy that seeks to require a party to perform… #
Related terms include specific performance order, mandatory injunction, and enforcement. For example, if a company breaches a contract and the other party seeks specific performance, the court may grant the remedy and order the company to perform their obligations.
Termination of a contract refers to the act of bringing a contract to an… #
Related terms include discharge, cancellation, and rescission. For example, if a company breaches a contract and the other party seeks to terminate the contract, the court may grant the remedy and bring the contract to an end.
Third party rights refer to the rights of a party who is not a party to a… #
Related terms include privity of contract, third party beneficiary, and incidental beneficiary. For example, if a company enters into a contract with a customer, the customer's employees may have third party rights under the contract.
Undue influence is a doctrine that applies when a party has been induced… #
Related terms include duress, coercion, and pressure. For example, if a company uses undue influence to induce a customer to enter into a contract, the contract may be voidable.
Unfair contract terms refer to terms in a contract that are unfair or unr… #
Related terms include unfair contract practices, consumer protection, and statutory regulation. For example, if a company includes unfair contract terms in a contract with a customer, the customer may be able to challenge the terms as unfair.
Variation of a contract refers to the act of changing or modifying the te… #
Related terms include amendment, alteration, and modification. For example, if a company and a customer agree to vary the terms of a contract, the variation may be effective in changing the contract.
Vicarious liability refers to the liability of a party for the actions of… #
Related terms include vicarious responsibility, agency, and principal. For example, if a company is liable for the actions of an employee, the company may be vicariously liable for any loss or damage caused by the employee.
Warranty is a promise or guarantee that is often included in a con… #
Related terms include guarantee, undertaking, and assurance. For example, if a company includes a warranty in a contract that the goods will be of a certain quality, the warranty may be effective in providing assurance to the customer.
Waiver is a doctrine that applies when a party has waived or given up a p… #
Related terms include waiver of rights, waiver of claims, and estoppel. For example, if a company waives a particular right under a contract, they may be estopped from later asserting that right.