WGU C713 Business Law Chapter 19 exam questions and answers 2024

Expectation Interest What the injured party reasonably thought she would get from the contract Reliance Interest If the injured party has not shown an expectation interest, but proves that he spent money in reliance on the agreement and that, in fairness, he should receive compensation: Designed to put an injured party in the position he would have been in had the parties never entered the contract Restitution Interest The injured party has conferred a benefit on the other party (ie., $). The service did not take place, getting this interest might get the $ back. Equitable Interests In addition to money, an order for the breaching party to perform or an order forcing it to stop doing something. Direct Damages Type of damage that flow directly from the contract. Typically monetary. Consequential Damages Type of damage resulting from the unique circumstances of the injured party. Incidental Damages Type of damage: Relatively minor costs that the injured party suffers when responding to the breach Remedies Available to Seller Remedy: Resell the goods elsewhere and Incidental damages. Remedies Available to Buyer Remedy: "Cover" to make a good purchase of good similar to those in the contract. If not cover, the buyer is entitled to the difference between the contract price and the market value of the goods Promissory Estoppel Legal principle that a promise is enforceable by law, even made without formal consideration, when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment Contract breach restitution interest When on party breaches a contract the other may be entitles to recoup what he put in Voidable Contract: Restitution Interest Common remedy in contracts involving fraud, misrepresentation, mistake and duress. Undo a contract and put the parties where they were before they made the arrangement Quasi-Contract: Restitution Interest Restitution Interest: Court may award restitution, even in the absence of a contract, when one party has conferred a benefit n another and it would be unjust for the other party to retain the benefit. Specific Performance For both parties to complete the deal: forces the 2 parties to perform their contract Injunction Court order that requires someone to do something or refrain from doing something Reformation A court may partially rewrite a contract to fix a mistake or cure an unenforceable provision Mitigation of Damages A party injured by a breach of contract may not recover for damages that he could have avoided with reasonable efforts. To keep damages as low as reasonable. Nominal Damages A token sum, such as one dollar, given to a plaintiff who demonstrated a breach but no serious injury Liquidated Damages A provision stating in advance how much a party must pay if it breaches.