Business Law, Text and Cases, Thirteenth Edition, Chapter 19 Essay

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consequential damages
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foreseeable damages that result from a party’s breach of contract
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incidental damages
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expenses that are caused directly by a breach of contract (such as those incurred to obtain performance from another source)
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liquidated damages
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when a contract specifies that a certain dollar amount is to be paid in the event of a future default or breach of contract
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mitigation of damages
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a doctrine: in most situations, when a breach of contract occurs, the innocent injured party is held to a duty to mitigate, or reduce the damages that he or she suffers
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nominal damages
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when no actual damage or financial loss results from a breach of contract and only a technical injury is involved, damages may be awarded to the innocent party
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penalty
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a certain amount to be paid in the breach of a contract to punish the breaching party
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reformation
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an equitable remedy used when the parties have imperfectly expressed their agreement in writing; this allows a court to rewrite the contract to reflect the parties’ true intentions
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restitution
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an equitable remedy under which a person is restored to his or her original position prior to loss or injury, or placed in the position he or she would have been in had the breach not occurred
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specific performance
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an equitable remedy that calls for the performance of a specific act promised in a contract
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waiver
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the knowing relinquishment of a legal right

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