Introduction

Read the overview below and complete the activities that follow.

Before beginning this activity, make sure to read LO $14-1.$ Focus on the different ways contractual obligations can be terminated and discharged, including: performance, the happening of a condition or its failure to occur, material breach by one or both parties, agreement of the parties, and operation of law.

CONCEPT REVIEW:

Required information

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Legal Remedies for Breach of Contract

Introduction

Read the overview below and complete the activities that follow.

Before beginning this activity, make sure to review LO $14-2.$ Pay attention to the distinctions among the different types of legal remedies, including compensatory damages, consequential damages, punitive damages, nominal damages, and liquidated damages.

CONCEPT REVIEW:

The fact that one party has breached a contract does not necessarily mean that the nonbreaching party will sue. A number of factors go into the decision of whether or not it makes sense to file suit. However, if a plaintiff does decide to sue, the remedies the plaintiff will be thinking about can generally be classified as either legal remedies $($also known as monetary damages$)$ or equitable remedies, some form of court$-$ordered action.

Mini$-$Case

First, read the case below. Then, answer the accompanying questions.

Suppose Nigel sells Blair a watch for $$200.$ Nigel tells Blair it is an antique Rolex he inherited from his dead grandfather, but in fact, it is a fake; he bought on the streets of New York City. The fake watch is worth $$50,$ but if it had been a genuine antique Rolex, it would be worth $$600.$ In this scenario, Nigel is in breach of contract and could be sued.