The issue in this case is whether Big Board has breached contract and the damages available to Specialty and the reasoning behind them. Breach of contract is a situation that occurs if one or both of the parties do not perform their duties as specified in the contract. If a contract has not been discharged or excused, the contracting party owes an absolute duty (covenant) to perform the duty. There are 3 levels of performance of a contract, complete, substantial and inferior. Complete performances discharge the parties from the contract. The complete performance occurs when a party to a contract renders performance exactly as required by the contract. Tender of performance is an unconditional and absolute offer by a contracting party to Inferior performance constitutes a material breach of the contract. It arises in a situation in which a party fails to perform express or implied contractual obligations and impairs or destroy the essence of the contract. Anticipatory breach is a breach that occurs when one contracting party inform the other that he or she will not perform his or her contractual duty when due. Where there is an anticipatory repudiation, the nonbreaching party’s obligations under the contract are discharged immediately and has right to sue. The nonbreaching party doesn’t need to wait for the actual performance. The nonbreaching party may recover monetary damages from breaching party. The types of monetary damages rewarded include compensatory, consequential, liquidated, and nominal damages. Compensatory damages is an award of money intended to compensate a nonbreaching party for the loss of the bargain. Compensatory damages place the nonbreaching party in the same position as if the contract had been fully performed by restoring the benefit of the bargain. Consequential damages are special foreseeable
Damages in the United States include two categories. Compensatory damages are intended to compensate for the plaintiff’s loss. Punitive damages, on the contrary, are meant to punish the defendant .The punitive damages exceed the plaintiff’s loss, to dissuade the defendant from any further wrongdoings. For instance, having a company pay significant punitive damages may encourage it to greater caution. Another difference between the two categories is the money involved. If the damages are compensatory, the money usually goes entirely to the plaintiff, but if they are punitive, part of the money goes to the law firm and part to the plaintiff.
When discussing the concept of contract law, there exist two bodies of legal rules that may apply to the contract. These bodies are the common law of contracts and Article 2 of the Uniform Commercial Code or the UCC. The common law of contracts is court made and is constantly changing, but the UCC is required in every state within the U.S.A. It is important to know which one to use and when, as well as what the differences between them are.
(1) When the contract was entered into, was it apparent that damages would be difficult to estimate in the event of a breach? (2) Was the amount set as damages a reasonable estimate and not excessive? (Cross & Miller, 2012)
Court stated that “if a hospital functions as a business institution, by charging and receiving money for what it offers, it must be a business establishment also in meeting obligations it incurs in running that establishment.”
a time or event when performance must be made, terms and conditions for performance, 5. performance, if the contract is (unilateral).” (Contract Law & Legal Definition 2016) http://definitions.uslegal.com/c/contract-law/
Nursefinders argues that the causes of action based on respondent superior liability failed because Drummond was a special employee of Kaiser or acted outside the course and scope of her employment. they also asserted that no triable issues listed on Montague’s negligence claim and the lack of cable cause of action precluded a derivative loss of consortium claim.
If a breach of contract is both material and opportunistic, the injured promisee has a claim in restitution to the profit realized by the defaulting promisor as a result of the breach. Liability in restitution with disgorgement of profit is an alternative to liability for contract damages measured by injury to the promisee.
The performance bond protects the general contractor (obligee on a subcontract bond) from losses in the event that the subcontractor fails to perform the contract. The payment bond guarantees that the subcontractor will pay their workers, subcontractors, and materials suppliers and that the project will be a lien free project. Requiring performance and payments bonds from your subcontractors transfers the risk of a subcontractor’s non-performance and non-payment to the surety
"A contract is a legally enforceable promise or set of promises. In other words, when promises have the status of contract, the contracting party harmed by a breach of the contract is entitled to obtain legal remedies against the breaching party" (Mallor et al., 2015, p. 320)
Specific performance generally is an equitable remedy granted by the court imposing an obligation on the party who is intended or have committed a breach of contract to perform his duty. It is a proper method of compelling the defendant to perform a positive obligation of his own under the contract entered into between him and the plaintiff.[ Halsbury Law of Schools] With the order for specific performance, the party in breach must perform his obligation.
Compensation is a form of corrective justice that can take a variety of forms. It is usually monetary in nature and manifested in an award of damages but may also be injunctive where necessary or take the form of self-help relief. According to Cecil A Wright; in modern living there must of necessity be losses and therefore, the purpose of the law of torts is to adjust these losses and to afford compensation for injuries sustained by one person as a result of the conduct of another .
The original theory was that frustration discharged the contract through an implied term to that effect (Taylor v. Caldwell [1863], Tamplin Steamship Co. Ltd. v. Anglo-Mexican Petroleum Products Co. Ltd. [1916]), but the modern view is that the parties' actual intentions are irrelevant and that it is up to the courts to impose a just and reasonable solution (per Lord Wilberforce, National Carriers v Panalpina [1981]).
Breach of a contract – failure or refuse to perform than the contract has been breach than the other party has the right to terminate the contract.
A valid contract is an agreement including promises made between two or more parties with an intention of certain legal rights and legal responsibility that are enforceable. For there to be a contract – that must contain four essential elements- offer, acceptance, intention to create legal relations and consideration.
This research paper will discuss what Performance-Based Contracting is, who are the people involved in Performance-Based Contracting process, and the purpose of using Performance-Based Contracting.