Submitted by: Submitted by Blynnd74
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Pages: 3
Category: Other Topics
Date Submitted: 06/30/2013 02:21 PM
Contracts Remedies
If a company sends a product back to another company for repair and that said product is
not returned in the specified time that was identified, then is that company compensated for lose
of profit due to the late return. I will discuss a few remedies that fall under this topic. There are
several remedies for breach of contract, such as award of damages, specific performance,
rescission, and restitution. In courts of limited jurisdiction, the main remedy is an award of
damages. Because specific performance and rescission are equitable remedies that do not fall
within the jurisdiction of the courts. There are two categories of damages that may be
awarded if a breach of contract claim is proved, they are Compensatory Damages and Punitive
Damages.
Compensatory Damages cover the loss the non-breaching party incurred as a result of the
breach of contract. The amount awarded is intended to make good or replace the loss caused by
the breach. There are two kinds of compensatory damages that the non-breaching party may be
entitled to recover, General Damages and Special Damages. General Damages cover the loss
directly and necessarily incurred by the breach of contract. General damages are the most
common type of damages awarded for breaches of contract. Special Damages cover any loss
incurred by the breach of contract because of special circumstances or conditions that are not
ordinarily predictable. These are actual losses caused by the breach, but not in a direct and
immediate way. To obtain damages for this type of loss, the non-breaching party must prove that
the breaching party knew of the special circumstances or requirements at the time the contract
was made. The standard measure of damages is an amount that would allow the non-breaching
party to buy a substitute for the benefit that would have been received if the contract had been
performed. In cases where the cost of the substitute is...