Understanding Remedies for Breach of Contract

The video tutorial discusses the breach of contract and the subsequent actions that can be taken. It explains how parties often negotiate to resolve breaches but may resort to mediation, arbitration, or court. The court can award various damages, including compensatory, liquidated, and nominal damages. Compensatory damages include actual and consequential damages, while liquidated damages are pre-determined amounts in contracts. Nominal damages are symbolic when actual losses are minimal. The court also has equitable powers to ensure fairness, such as rescinding contracts or ordering restitution.

What is the first step parties usually take when a breach of contract occurs?

• File a lawsuit

• Negotiate to resolve the issue

• Immediately go to arbitration

• Ignore the breach

What are compensatory damages intended to do?

• Cover legal fees

• Reward the breaching party

• Compensate the non-breaching party for their loss

• Punish the breaching party

Which type of damages naturally flow from a breach of contract but may not have been foreseen?

• Actual damages

• Consequential damages

• Nominal damages

• Liquidated damages

What is the purpose of liquidated damages in a contract?

• To cover legal expenses

• To reward the non-breaching party

• To estimate potential damages in case of a breach

• To punish the breaching party

When are nominal damages typically awarded?

• When actual damages are significant

• When the breach is intentional

• When the contract is void

• When there are no actual damages

What does the court aim to achieve with its equitable powers in breach of contract cases?

• To ensure fairness and prevent unjust enrichment

• To punish the breaching party

• To favor the non-breaching party

• To delay the proceedings

What is restitution in the context of contract law?

• A penalty for the breaching party

• A refund or compensation for the value received

• A reward for the non-breaching party

• A legal fee reimbursement