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Monteray Damages

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Submitted By Michijae1224
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Mitigation of Damages: In most situations, when a breach of contract occurs, the non-breaching party has a duty to take whatever action is reasonable to minimize the damages caused by the breach.

 For example, in most instances, people who are fired by their employer, regardless of the reason, have a duty to find a new job. Likewise, a thwarted house buyer has a duty to take reasonable steps to locate another house.

 Liquidated Damages: Many contracts contain provisions specifying a sum certain of money to be paid by the breaching party in the event that he fails to perform as required by the contract. Generally speaking, the liquidated damages are based on a reasonable estimate of the value of the promised performance.

 Penalties: By contrast, a penalty provision specifies a sum certain of money, bearing no reasonable relationship to the value of performance, to be paid by the breaching party in the event of default or breach. Penalty provisions are rarely enforceable. EQUITABLE REMEDIES

 In addition to the various types of money damages, there are several equitable (i.e., non-damage) remedies available.

 Rescission: Canceling a contract and returning the parties to their pre-contract position.

 Restitution: Returning goods, property, or money previously transferred in order to restore the non-breaching party to his pre-contract position.

 Specific Performance: Requiring the breaching party to perform exactly as called for in the contract.

 This remedy is usually granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique (e.g., contract to purchase an original Picasso or a particular tract of land).

 Reformation: A remedy allowing the contract to be re-written to reflect the true intent of the parties.

 This remedy is typically limited to cases of fraud or mutual

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