Premium Essay

Contractual Remedies

In: Business and Management

Submitted By cateyez06
Words 549
Pages 3
Contractual Remedies
Brandi Brothers
Grantham University

When one breaches a contract, the non-breaching party may be entitled to compensations because of legal rights detailed in that contract. In this paper I will discuss an agreement between two parties that resulted in a breach of contract. I will also discuss the consequential, incidental and compensatory damages that one company is liable for in this case.

Haply Inc. goes under contract with Barksdale LLC to get an engine fixed. During that time both companies came to a settlement that the engine would be fixed and reinstalled at the Haply’s facilities but in five days’ time and no more. Barksdale was also briefed by Haply and made them aware that if the engine wasn’t repaired on time that bad press would cause them to lose a client which Haply would have to come out of pocket $40,000 per day for a replacement if the engine wasn’t delivered after the five-day window. Barksdale did not complete the contract until the 7th day. Because Barksdale did not honor their contract, Haply had to come out of pocket $40,000 per day for those extra days and another $500 to secure the delivery of the replacement engine. Barksdale didn’t fulfill their end of the bargain resulting in Haply losing a client’s business totaling $3,000,000. Because this was such a big lost for Haply they decide to sue Barksdale for incidental, consequential and compensatory damages. Incidental damages are defines as something that happens by accident or without intent. Consequential damages are defined as damages demanded and/or granted in a lawsuit which were caused as a direct predictable result of misconduct (2008). Compensatory damages are defined as the totality of money awarded to an individual or persons who suffers damages or losses directly caused by the acts of another (2014). The difference…...

Similar Documents

Premium Essay

Business Contractual Relationship

... -----case 1 1. What is duty of care? According to business contractual relationship (2007), the law of delict, like the law of contract, is a part of the law of obligation. A delict has been defined as: A civil wrong commented by a person in deliberate or negligent breach of a legal duty, from which liability to make reparation for any consequential loss or injury may arise. It also states that delictual obligations do not arise voluntarily, as is the case with contractual obligations. However, the contract is voluntary. There are three elements noted in General Principles of Delictual Liability: • a loss or injury, such as physical or personal injury, the loss of earnings, nervous shock, distress, damage to a reputation • caused by a legal wrong(wrongful conduct) • Caused by culpa (fault, intentionally or negligently done) on the part of the wrongdoer. Two exceptions argued that: • vicarious liability, where the defender for the actions of another • Strict liability, where liability can arise without fault through statutory provision. If two or more persons have contributed to the delict, then they are jointly & severally liable. The injured party can sue one, or all together---and claim full damages. If he only sues one, then the other can recover a contribution from the others according to what the law thinks just: law reform, act 1940. Business contractual relationship (2005) claims that in certain circumstances, someone......

Words: 2800 - Pages: 12

Premium Essay

Medical Remedies from 1860

...During the 1830’s medical remedies that were advertised to the public were not proven to be effective in eliminating diseases. Many medical remedies were mainly advertised in hopes to make money off of the American citizens who were in need of cures and had faith in doctors. The advertisement of a medical remedy by a person living in antebellum America was not based on proof of solid scientific evidence but instead on the faith of people who put their trust into the country’s media outlets as well as trust in Doctors and their new creation of these medical remedies. In the Saratoga Sentinel Newspaper of 1830, numerous "medical cures” are advertised to cure multiple symptoms of many diseases and sicknesses. Included in these advertisements is what is considered to be solid evidence of the product’s effectiveness. The proof that a product works is provided by doctors who claim so as well testimonies from people recommending the product after supposedly using it. The vague description of the products as well as the lack of scientific proof for the reliability of these “cures” reveal that the real faith in the effectiveness in them stem from the trust in doctors and in the local newspapers. In the advertisement labeled the “Cure for Bowel Complaints” the advertisers claim to have the “remedy” for “most diseases of the stomach and bowel”. [1] In order to prove that this remedy is effective, the advertisers provide a statement from a person known as “Dr. M.L KNAPP”1 who......

Words: 745 - Pages: 3

Free Essay

Contractual Energy Case

...What Mr. Tan worried about is that the net profit from operation in 2011 (578,751K RMB) is not as good as it is in 2010 (670,061K RMB). We concentrate on the variance between 2010 and 2011 and the data variance shall show us why the net operation income decreased. Relevant Data * Production: (MWh) | 2010 | 2011 | Contractual Energy | 3,000,164.00 | 3,000,325.00 | Exess Energy | 937,666.00 | 427,214.00 | Total | 3,937,830.00 | 3,427,539.00 | * Price: (RMB/KWh) | 2010 | 2011 | Contractual price | 0.4219 | 0.4238 | Excess Energy price | 0.2531 | 0.2120 | Average | 0.3817 | 0.3974 | * Coal:   | 2010 | 2011 | Mass of coal per MWh (Ton/MWh) | 0.347 | 0.346 | Total Coal Consumed (Ton) | 1,366,269.819 | 1,185,863.446 | Total Cost of Coal (RMB) | 362,062,000.000 | 320,183,000.000 | Coal price (RMB/Ton) | 265.000 | 270.000 | * Explanation: The production form shows the variance in total production between 2010 and 2011. This affects the revenue performance of the company. The price form shows the sales price variance in 2010 and 2011. This will also affects the revenue performance. The coal form shows the variance of fuel efficiency and fuel cost in 2010 and 2011. Data Variance   | Contract Minimal | Excess | Total | Quantity Var | 67,925.90 | -129,185,192.16 | -129,117,266.26 | Price Var | 5,700,617.50 | -17,554,223.26 | -11,853,605.76 | Fuel Efficiency Var | - | - | 957,626.79 | ...

Words: 719 - Pages: 3

Premium Essay

Contractual Risks Overseas

...Contractual risks overseas Business 601: Global Management Perspective A firm that is looking to delve into the global arena will need to have its management team and attorneys to do diligent research into governmental, local and societal issues that could affect the company’s expansion and overall profitability. There are many factors that could play a role on where and how a company goes global. Some countries have strict environmental, employment and societal requirements that have to be met by all companies doing business within their borders. With proper research, a company can take the necessary steps to increase their footprint in the right location and continue to keep their shareholders content with management’s decisions. While making these decisions, contract negotiations will have to be done with local and governmental officials and these negotiations can be somewhat disconcerting to management but they will be worthwhile when they protect all assets of the company. There are six elements that make international business contractual process different than the domestic process: 1. The parties must deals with the laws, policies and political authorities of more than one nation. 2. The presence of different currencies means that issues may arise due to that contractual payments may vary and many governments want to control the flow of domestic and foreign currencies across their national borders. 3. The participation of......

Words: 645 - Pages: 3

Free Essay

Acne and Its Remedies

...Acne and Its Remedies by Hanna Rejas This is an article about acne. I am writing about this because most people, especially teenagers have this skin problem. For almost 8 years, I suffered this skin problem. It started when I was a junior in high school and it lasted until I graduated from the university. I know a lot of people who have acne. My younger siblings even complain about this. I know how it feels. I am sharing this so that other people may benefit from my experience and how I dealt with it. Acne vulgaris or simply acne is a common human skin disease, characterized by areas of skin with seborrhea (scaly red skin), comedones (blackheads and whiteheads), papules (pinheads), nodules (large papules), pimples, and possibly scarring. Acne affects mostly skin with the densest population of sebaceous follicles; these areas include the face, the upper part of the chest, and the back. In my case, during the worst part of it, I have acne all over my face, neck and back. The worst part is my face, it looks red and it has lots of scars and it made me feel bad about myself. Aside from scarring, its main effects are psychological, such as reduced self-esteem and in very extreme cases, depression or suicide. Acne usually appears during adolescence, when people already tend to be most socially insecure. Early and aggressive treatment is therefore advocated by some to lessen the overall long-term impact to individuals. As we all know, acne occurs most commonly during......

Words: 761 - Pages: 4

Premium Essay

Contractual Issues

...Contractual Issues Memorandum TO: Information Technology Officer FROM: Legal Advisor DATE: March 31, 2014 Issues EULAs can highlight things that can put you at risk. The harm comes from ignoring EULAs— and the subtle warnings they might contain—by blindly agreeing to their terms: • Ignoring EULAs can expose your computer to security risks. • Ignoring EULAs can put your privacy at risk. The following issues were noticed when scrutinizing the VMware’s End User License Agreement: 1. It is a shrink wrapped contract: by simply downloading the software the company agrees to the terms of the EULA. 2. Liability for third party use: The company will be liable for our third party agents compliance with the terms and conditions of the EULA. Any breach of VMware’s EULA by a Third Party Agent shall be deemed to be a breach by our company.  3. EULA allows VMware to monitor internet activities. 4. VMware collects personal information: VMware may collect information about individuals such as their name, address, telephone number or email address, user IDs and passwords, billing and transaction information, credit card or other financial information and contact preferences. 5. Choice of Law: VMWare has a choice of law provision in its EULA that all disputes will be governed according to the laws of the state of California. 6. VMware can fully use and disclose any information not in personally identifiable form 7. Company will be liable for......

Words: 841 - Pages: 4

Premium Essay

Sales Contracts – Breaches and Remedies

...Sales Contracts – Breaches and Remedies Flavia Ana Guez Business Law for Managers In a business environment, you may at times find yourself caged by circumstances. From time to time, you might have to make decisions that require breaching a contract. As a merchant, the Uniform Commercial Code governs the impact of the breach of your contract whether you are the seller or the buyer. Seller`s remedies for breach of contract If a buyer repudiates/ breaches a contract, the seller`s remedies and options are as follows: • Withhold delivery of the goods • Stop delivery of goods in transit • Resell the goods and recover damages • Recover damages equal to the difference between the market price and the K price • Cancel the contract In a scenario where the seller chooses to resell the goods, the resale must be made in good faith and in a commercially reasonable manner. In this situation, the seller may recover the difference between the resale price and the contract price, together with any incidental damages, but less expenses saved as a result of the buyer’s breach. If the resale of the goods is done via a private sale, the seller must give the buyer reasonable notice of the intended sale. If a reasonable notice is not given to the buyer, the seller might be prevented from recovering under this remedy. 
 If the goods are not resold by the seller, the difference between the contract price and the market price under the contract can be......

Words: 749 - Pages: 3

Premium Essay

Remedies for a Breach of Contract

...Remedies Available for Breach of Contract Breach of Contract – the nonperformance of a contractual duty. A Breach of Contract occurs when one party of a contract fails to perform his or her specific obligations under a contract. Example: Alison Parker enrolled in a Business Law class, she has a friend, Phil Michaels that has taken the same class the previous semester. Phil offers to sell his used book to Alison for $25.00, Alison agrees. When they meet for the exchange, Alison has the money, but Phil has already sold the book to someone else for a higher price. Phil has breached their oral contract, and Alison is entitled for compensation. Remedy – the relief provided for an innocent party when the other party has breached the contract. There are two kinds of remedies available for a Breach of Contract: Damages and Equitable Remedies. Damages – the monetary compensation a nonbreaching party is awarded in a breach of contract. 1. Compensatory Damages – Damages that compensates the nonbreaching party for the loss he or she incurred as a result of the breach of contract. The monetary award is to replace the loss caused by the breach, to “make the nonbreaching party whole.” Example: Mary Ann is a professional house-sitter. She contracts to housesit for Ginger for the first three weeks of June for $3,000. The day before Mary Ann’s arrival to Ginger’s house, Ginger cancels and is in breach. Mary Ann was able to find another client, but because of the short notice, can......

Words: 1649 - Pages: 7

Free Essay

Remedies - Legal Framework

...Remedies: Breach of Contract Introduction There are various remedies available to an innocent party where there has been a breach of contract. The main remedy is damages, but in certain situations, equitable remedies are available. 1. Unliquidated Damages Unliquidated damages are assessed by the court and are designed to compensate the innocent party for any losses incurred as a result of a breach of contract. However, where loss can not be proved, the innocent party will only be entitled to claim nominal damages. In the case of Surrey CC v Bredero Homes (1993), damages were not awarded defendant who had failed to comply with planning permission because the council had not suffered any loss. This can be contrasted with the case of Chaplin v Hicks (1911) where the court awarded damages to the claimant for the loss of a chance to win a competition. Unliquidated damages are not a means by which to punish the defendant and punitive damages will not be awarded for a breach of contract. They are also not a way to recover any gain made by the defendant as a result of a breach. Loss includes any harm or damage to the claimant themselves or any of their property, including any reduction of value of such property caused by the breach of contract. However, in calculating the loss and awarding damages, if the claimant has obtained any benefit from the breach the court will not usually allow the claimant to be put in a better position than they would have been had the breach not......

Words: 1634 - Pages: 7

Premium Essay

Contractual Agreements

...In order to establish a contractual agreement between Futuretronics (‘FT’ hereafter) and Graphix Labels (‘GL’ hereafter), the common law dictates that we must satisfy the elements of offer, acceptance and consideration. These elements are to be determined objectively, in regards to whether a reasonable person would believe a contract to exist between the parties. Though we must carefully analyse these elements separately, it is important to note that in essence, the courts are trying to determine whether an agreement was reached between the parties. For the purposes of the assignment, this advice will be based on the assumption that the Electronic Transactions Bill 2011 (WA) (‘ETA’ hereafter) has passed and is in force. We will apply the bill in regards to the ‘timing’ of offer and acceptance between the parties. Offer An offer is an indication of a party’s willingness to enter into an agreement and be bound by stipulated terms. On 4 January 2006 Mr Chonja of FT sent an order via text message to GL for 21000 skins for iPod Shuffles, iPod Minis, iPod 4Gs and Xbox 360s, totalling $32099. Whilst it would appear to a reasonable person in the position of GL that FT intended the offer and that if accepted, a binding agreement would be made, there is another possible determination of whether an offer actually occurred. The facts reveal that in 2005 various dealings took place between FT and GL. GL may argue that text message is an unacceptable mode of communication to......

Words: 1620 - Pages: 7

Premium Essay

Contractual Law

...Assessment #2 Questions 1.) Is Mr. Alpert obligated to keep the offer open until the specified time? What could Ms. Burke have done to better protect her position? (3 marks) No, R. Alpert is not obligated to keep the offer open if he has received another offer to purchase before the offeree (J.Burke) has accepted it. As specifically stated in the written offer, “I hereby agree to sell to J. Burke my entire fleet of Rolls Royce automobiles for the sum of $1 million. This offer is open until Monday, September 21, at 9:00 a.m.” The offer is a tentative commitment on the part of the person making it. It is only until the other party accepts (the offeree) that the offer becomes contractual and there is an actual binding legal agreement and obligation for R. Alpert to sell only to J. Burke until the stated deadline. The textbook illustrates a perfect example of a very similar scenario in the Dickinson v. Dodds case when Dodds made an offer to sell to Dickinson for $800 and said “this offer to be left over until Friday 9:00 a.m.” There is a clear illustration that there was an open offer and a certain time frame for the offer to be accepted is clearly stated. The case is very important because it truly demonstrates the nature of an offer and the effectiveness of accepting an offer. R. Alpert had the freedom to withdraw at anytime before it was accepted. The Dickinson v. Dodds case also had a similar scenario where Dickinson indirectly found out about the sale of the......

Words: 2435 - Pages: 10

Premium Essay

Natural Remedies

...Shortness of breath * Pale and dull skin * Sore gums and throat The main aim in treating anemia is rebuilding the supply of red blood cells in the body. To achieve this level we can incorporate different diet supplements and natural remedies into our everyday routine. The most effective natural treatment option are in Blackstrap molasses, chlorophyll, and beetroot . 1.Blackstrap Molasses Blackstrap molasses is the sweet leftovers of forming refined sugar. As such, it is full of important nutrients including iron, manganese, and others. These nutrients help restore the natural nutrient composition in the body to help boost red blood cell supply. 2. Chlorophyll Chlorophyll is almost an exact match of the red blood cells or hemoglobin in the human body. With such a unique composition, chlorophyll can serve as a substitute for red blood cells until the body is able to replenish the healthy red blood cell count. 3. Beetroot Beetroot may very well be the best natural remedy for anemia. It cleanses the body while supplying oxygen and increasing the blood count in the body, making it an ideal treatment for the condition.It is very effective mixed with spinach juice,aplle juice or carrot. The another very effective home remedies for anemia are in apples ,honey ,black currant and Epsom Salt. Tablespoon of honey mixed with lemon juice and apple cider vinegar increases haemoglobin in the blood and is rich in iron,magnese and copper. Epsom Salt is very......

Words: 1035 - Pages: 5

Premium Essay

Breach of the Contract and Remedies for It

...Breach of the Contract and Remedies for It Breach of the contract is a situation when buyer or seller does not perform its obligations those are mentioned in the contract. By this way, there are some remedies for breach and the party which one does not fulfill his contractual promise should compensate all damages after breach. The main types of breach of contract are minor, material, fundamental, and anticipatory. Minor is a breach of contract that is less severe than a material breach and it gives the harmed party the right to sue for damages but does not usually excuse him from further performance. That means when a party to the contract fails to perform a part of a contract and the fail is very small and all parties can otherwise fulfil any remaining contractual obligations very easily without any consequences. Paul and Bill, two business partners, hire SevenSeas, Inc. to build them a boat. The contract says that SevenSeas will build the boat according to Paul and Bill’s specifications and that Paul and Bill will pay SevenSeas $2 million. One of the specifications that Paul and Bill lay out is that the boat must contain bullet-proof windows. SevenSeas builds the boat exactly according to specifications except for the windows, for which SevenSeas accidentally uses ordinary glass. Using the guidelines laid out above, the court would most likely rule that SevenSeas’ breach was minor: SevenSeas has basically finished performance, the breach was accidental, Bill and......

Words: 2235 - Pages: 9

Premium Essay

Contractual Offer

...the offer has been accepted, such as when parties perform the terms of the contract. Lastly, it may be conditional on the happening of a certain event, such as, “I will accept your offer so long as you trim my fence in the next two days,” by its terms a conditional contract is a counter-offer. Most offers are by their very nature conditional, offers can be conditional upon various factors. If any conditions are included, it must be made sure that they are clearly stated. An acceptance must be in response to an offer. One cannot accept if he or she did not know of the offer. To protect the buyer and the seller, however, if an offer is intended, it should always be in writing and details indicated clearly. Termination of offer in contractual relations. Acceptance will be effective and will give rise to a contract only when the offer is still standing. Otherwise, the offer will automatically terminate in the following ways; The most obvious is rejection by the offeree. A counter offer will also have the effect of rejection. Where the offeror revokes the offer at any time before acceptance, the offer is effectively terminated. He may revoke it even when he has promised to keep it open for some time. Such a promise to keep an offer open is only gratuitous, and unless it is made under seal, it is not binding contractually. However, if consideration has been paid to keep the offer open for a specified period, that promise becomes binding and is...

Words: 1533 - Pages: 7

Premium Essay

Classification and Remedies of Term

...CLASSIFICATION AND REMEDIES OF TERMS GOH KAH LING* The writer has discussed that contract is a legally enforceable agreement that meets certain specified legal requirements between two or more parties. Terms of contract are statements that made by one party in order to encourage the other party to enter into the contract. It should be clear, promissory and capable of acceptance. Terms of contract can classified as conditions and warranties. Conditions terms are term of major importance which goes to the root of the contract. It entitles innocent party to terminate the contract and sue for damages. Warranties term is a subsidiary term of the contract. It will compensate the innocent party for any loss or inconvenience. It is a hybrid term, sometimes assuming the characteristics of a condition and at other times the characteristic of a warranty. Severity of breach of intermediate terms depends entirely on the legal consequences of the actual situation Breach occurs where a contract has come into being and one or other of the parties fails to perform all or some part of the obligations under it. There are four main remedies available to the wronged party: Specific performance, injunction, damages and restitution. CONTENTS I | Introduction | 2 | II | Terms | 2 | III | Conditions Terms | 3 | IV | Warranties Terms | 4 | V | Intermediate Terms | 5 | VI | Remedies | 7 | | (i) Specific Performance | 7 | | (ii) Injunction | 8 | | (iii) Damages | 8...

Words: 4137 - Pages: 17