Remedies in Contract Law Quiz

Punitive damages are not awarded in contract law; they are designed to punish and deter wrongful conduct, typically associated with tort law.

Liquidated damages clauses specify in advance the amount of damages to be paid if a breach occurs, providing certainty for both parties.

Nominal damages are symbolic and awarded when a breach occurred, but no actual financial loss is proven.

Specific performance compels the breaching party to perform their obligations under the contract, typically used when monetary damages are inadequate.

Mitigation of damages requires the injured party to mitigate their losses by taking reasonable steps to prevent further damage after a breach occurs.

Compensatory damages are designed to compensate for actual losses suffered, while punitive damages aim to punish and deter wrongful conduct.

Equitable remedies focus on restoring fairness and justice by non-monetary means, such as specific performance or injunctions.

An injunction is granted to restrain the breaching party from actions that would cause irreparable harm to the non-breaching party's interests.

Rescission is ordered when a serious breach occurs, allowing parties to cancel the contract and be restored to their pre-contractual positions.

Quantum meruit allows recovery for services performed when no contract exists or when the contract is unenforceable, based on the reasonable value of the services.

Substantial performance allows for minor deviations from the contract terms as long as the essence of the contract is fulfilled, typically relevant in construction contracts.

Specific performance seeks to enforce the contract as agreed upon, while restitution aims to restore the non-breaching party to their pre-contractual position, typically through returning benefits received.

Consequential damages compensate for losses that were reasonably foreseeable at the time of contract formation but are not a direct result of the breach.