Compensatory – A money award equivalent to the actual value of injuries or damages sustained by the aggrieved party. When a contract has been breached, the court orders the party that breached to pay the amount of direct losses done to innocent party.
Consequential – Special damges that compensate for a loss that is not direct or immediate (for example, lost profits0. The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them. The party that breached the contract must reimburse the innocent party for the indirect losses even if they were foreseeable damages.
Punitive – Money damages that may be awarded to aplaintiff to punish the defendant and deter future similar conduct. A monetary award the court orders on the guilty party to punish them for a breach of contract.
Nominal – A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered or when the plaintiff is unable to tshow such loss with sufficient certainty. When the plaintiff cannot prove damages or no damages were done, the court may provide a small amount of money, “often one dollar”.
Liquidated – An amount, stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a beach. For the court to order this remedy, the contract must be in writing. Liquidation takes place of compensatory and consequential remedies. In the contract, it must say “if contract is breached…” breaching party must pay this much to the other party.
Rescission – A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties, by their conduct, or by court decree. This remedy requires both parties to “undue” the contract and put each party into the pre-contract position.
Restitution – An equitable remedy under which a person is restored to his or her original postion prior to loss or injury, or placed in the position he or she would have been in had the breach not occurred. Very similar to a rescission, but both parties must return each other into previous states but instead of canceling out the contract and returning each other into pre-contract state, they would be returned to pre-breached state.
Specific performance – An equitable remedy requing the breaching oarty to perform as promised under the contract; usally granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique (for example, real property) The court orders breaching party to complete the specific action that was promised in the contract.
Reformation – A court ordered correction of a written contract so that it reflects the true intentions of the parties.
Quantum meruit – Literally, “as much as he deserves’-an expression describing the extent of liability on a contract implied in law. An equitable doctrine based on the concept that one who benefits from another’s labor and materials should not be unjustly enriched thereby but should required to pay a reasonable amount for the benefits reecived , even abesnt of a contract.