Contract Law Remedies
Question 1: Legal Remedies
A legal contract outlines the rules to be followed by parties in the contract. A breach of the contract attracts legal remedies to compensate the injured party for damages suffered for when the breaching party fails to comply with the rules (Donahue, 2017). Types of legal remedy awarded are largely determined by the type or nature and severity of the loss suffered as a result of breaching the contract. There different types of remedies awarded to the offended company for damages that result from contract breach by the offending party. Rendleman and Roberts (2018) identified remedies as including restitution, quantum meruit, nominal, liquidated, and compensatory damages as well as equity and punitive remedies.
Restitution is a type of remedy aimed at restoring the injured party to their initial position before the creation of the contract. Therefore, this remedy does not cover loss gain gains as a result of the contract breach. Compensatory remedies are used to compensate the injured party for all the damages occasioned by the breach of contract (Rendleman and Roberts, 2018). The remedy is awarded to make the non-breaching party whole again rather than a punishment. Nominal damages are awards for negligible damages gives as a matter of principle due to contract breach. The breach of contract causes no real harm to the party and is more of a symbolic victory. Equitable involve an order to do something such as contract canceling or withdrawal of responsibilities from the offending party. The remedy is intended to act or deter the parties from behaving in a certain manner. Punitive is enforced to punish the breaching party and is applied in a situation where one party behaved in an unethical manner that is punishable by law. The quantum meruit is a monetary remedy awarded to compensate for the already performed work before contract breach or termination (Waddams, 2019). In conclusion, there are multiple types of remedies awarded to the injured party for the harm incurred due to a breach of contract by the offending party.
Question 2: Breach of Contract
Widget Incorporated acted is legally liable for breaching contract terms by supplying wrong products not stated in the contract. The company supplied 2500 orange widgets instead of and 25000 blue widgets instead of the 5000 blue widgets stated in the contract. Therefore, the company substituted orange widgets for the ordered blue widgets without giving any explanation for their action. The injured party is entitled to remedies as a reward for the damages incurred. These include compensatory remedy to make Big Widget Company whole again. This remedy will cover both the damages incurred as well as the loss of profit resulting from the breach of contract (Donahue, 2017). Secondly, the injured party is also entitled to equitable remedy where the court can order the offending party to supply the required blue widgets instead of the orange widgets. The equitable reward is meant to compel the offending company to comply with contract terms.
Therefore, Big Widget Company is entitled to two remedies to cover the monetary loss from the contract breach and also gain the necessary products as stipulated in the contract. Waddams (2019) asserted that compensation rewards are essential in making the offended company whole again while equitable rewards are meant to enforce the terms of the contract. In conclusion, as noted in this case, breaching the contract can attract more than one remedy to compensate for the damages incurred by the injured party
References
Donahue Jr, C. (2017). The Modern Laws of Both Tort and Contract: Fourteenth Century Beginnings. Man. LJ, 40, 9.
Rendleman, D., & Roberts, C. L. (2018). Remedies: Cases and Materials (2018). West Academic.
Waddams, S. (2019). The modern history of remedies for breach of contract. In Research Handbook on Remedies in Private Law. Edward Elgar Publishing.