Standard Measure. The standard measure of compen- satory damages is the differen

Question

Standard Measure. The standard measure of compen- satory damages is the difference between the value of from dam dama types e breaching party's promised performance under the contract and the value of her or his actual perfor- mance. This amount is reduced by any loss that the injured party has avoided, however Sale the u Example 19.1 Randall contracts to perform certain services exclusively for Hernandez during amou the month of March for $4,000. Hernandez cancels price the contract and is in breach. Randall is able to find Labor another job during March but can earn only $3,000. work He can sue Hernandez for breach and recover $1,000 Indust as compensatory damages. Randall can from Hernandez the amount that he spent to find the other job. also recover ers to 2. More Expenses that are caused directly by a breach of con- -such as those incurred to obtain performance price a were t tract

Explanation / Answer

Contract is a legal agreement between both parties that obliged them to perform their activities.if one of them violate the contract and does not perform their activity contractual obligation it is known as a BREACH OF CONTRACT.

Whenever one party does not perform certain contractual obligation than other party come in to sufferings. As in example of Randall and hernanadez,hernandez breach the contract and randal suffered because of breach of contract.contract act has given certain rights to sufferin party that is know as REMEDIES FOR BREACH OF CONTRACT.

suffering party has right to sue for damages all damages that is occured to suffering party because of cancellation or breach of contract or he can cover his compensatory damages that is the difference of value of promised value for performance of contract before breach of contract (i.e 4000$ in above example)and the value he is actually getting(i.e 3000$) .therefore difference is 1000$ .hernandez sue for suffering of 1000$.

SALE OF GOODS :

Sale of goods take place between seller and buyer ,therfor contractual obligations is in between seller and buyer.if any one of them breach the contract than court gives right to both of them to compensate dameges.These are as follows:

Seller's remedies against buyer-

If under the contract of sale goods are passed to buyer and buyer does not pay for it than seller can sue him and recover his damages.

If buyer does not accept goods and refuse to accept it a d pay for it than also seller can sue him.

Buyer's remedies against seller-

if ggoods aare not deliver to buyer intentionally or wrongfully than buyer can sue for damages because of non delivery.In the case calculating damages are difference in amount equal to contract price and actual market price.for example x booked the marriage hall in advance and pay 2000$ for it but he did not get his possesion and owner of hall cancel the contract than x book another marriage hall for the amount 3500$ than x can sue marriage hall owner and compenstae him 1500$.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.