double arrow

Text 3 How Damages Are Measured

In awarding damages for breach of contract, the court tries to place the injured party in approximately the position that party would have been in, had the breach not occurred. The amount awarded as compensatory damages is usually determined by the extent of the injury. One party is not permitted to increase the damages by continuing to perform the contract after notice of the other’s breach or intention to cancel. The injured party is also required to mitigate damages if reasonably possible. Failure to perform a duty under a contract is a legal wrong. Therefore courts will award nominal damages — token amount awarded when rights have been violated, but there is no actual injury. This could happen when, after a breach, the plaintiff finds a satisfactory product at lower price. Nominal damages are granted in recognition of the rights that have been violated.

At the time of entering into a contract, the parties may agree upon an amount of money that, in case of default, is to be paid by the person who breaches. This sum is known as liquidated damages. This arrangement is common when actual damages would be difficult to prove. It is enforceable if the amount is reasonable. If damages are not reasonable, the court will not enforce the agreement but will award reasonable damages if proved.

Under certain circumstances, such as when a tort is involved in a breach of contract, the court will award exemplary or punitive damages. Such damages are awarded in addition to the actual damages. The purpose of exemplary or punitive damages is to punish and to make an example of the defendant. This could happen, for example, when a defendant seller defrauds a plaintiff buyer.

Vocabulary

arrangement соглашение

compensatory damages компенсаторные, реальные, фактические убытки

nominal damages номинально-символические убытки

token amount символическая сумма

liquidated damages заранее оцененные убытки

punitive damages [‘pju:nitiv] 1) штрафные убытки;

2) денежное возмещение в виде наказания ответчика для примера

to enforce a contract осуществлять, приводить в исполнение контракт

Translate into Russian:


Понравилась статья? Добавь ее в закладку (CTRL+D) и не забудь поделиться с друзьями:  



Сейчас читают про: