Breach and remedies. What are rules for compensatory damages, how do they vary for goods, land and construction. What about consequential damages? Rescission, restitution and specific performance with special rules for personal services ... When is re formation needed for fairness? How can contracts be discharged by a court?

Answer / Explanation:

Rules for compensatory damage : Compensatory damage are compensation given to the complaining party in term of money, land or general properties that equates the exact amount of loss to the complaining part. This is also done after the complaining party have proved beyond reasonable doubt that loss occurred. The complainant must also be able to quantify the amount of loss in the eyes of the jury or judge. This are the basic rules for compensatory damage to take effect.

Now talking abut how they vary in respect to goods, land and construction.

Usually for goods, the measuring factors for compensatory damage to take effect is the difference between the market price and the contract price.

In the case of Land, it should be noted that a piece or parcel of land is usually unique to the owner, therefore, for a seller or owner breach of contract for a sale of land, then the buyer is awarded the piece of land he or she had bargained for. But in a case where the buyer is the one that breach the contract, then the measure of compensatory damage will be the measure of difference between the contract price and the market price of the land.

While for Construction, the measure of compensatory damage varies depending on the party that breaches a contract. It should be noted that in the case of construction, the owner as the case may be can breach the contract in three different ways which includes: before performance, during performance and after performance.

Consequential Damages: This are ripple effect of specific circumstances beyond the designed contracts in itself. They are repercussion as a result of a party's breach of a contract.

Rescission: This is basically the process whereby the parties involved in a contract decide to void or cancel the contract thereby restoring the status quo.

Restitution: This is basically the process whereby after rescission, the process before the contract are maintained that-is, assets are returned back to their original owners.

Reformation is need for fairness in that it reorganize or readjust the process to create a win-win scenario for the parties involved.

How a contract can be discharged by a court: When both parties have fully discharges the binding agreement within the context of a contract, then the court may discharge the contract.