Contract defenses
Contracts entered under __ are contracts entered into under threats, coercion, or force. The key is that the coercion must leave the party with no reasonable alternative but to agree
Duress
The two types of unconscionability
• Procedural unconscionability
• Substantive unconscionability
Which type of third party does the following describe.
The obligation to perform contractual duties is transferred to another party, though the original party may remain liable if the delegatee fails to perform
Delegation of duties
The three interests of damages
Expectation
Reliance
Restitution
In __ contracts an Employer must show: (1) unreasonable conduct, and (2) suitable, comparable jobs existed
Employment
• False Representation
• Knowledge of Falsity
• Intent to Deceive
• Reliance by the Other Party
• Resulting Damages
Are the key elements of this
Fraudulent misrepresentation
• Grossly one-sided terms.
• Excessive fees or penalties.
• Clauses that limit legal remedies
Are examples of this type of unconscionability
Substantive unconscionability
A third party may acquire ___ rights under a contract if the contract was made for their benefit
Enforceable rights
Damages that are a foreseeable result of the breach, but not directly caused by it (e.g., lost profits due to a delay caused by the breach)
Consequential damages
The goal of expectation damages is to put the injured party in the position ________
As if the contract had been performed
True or False. If the coerced party continues to perform or accept benefits under the contract after the duress ends, they may lose the right to claim this defense
True
____ refers to principles that uphold societal values, legal integrity, and fairness.
Public policy
The one type of third party beneficiary that does not have enforeable rights
Incidental beneficiaries
•Foreseeable
•Proven with reasonable certainty
•Mitigated by injured party
Are __ on expectation damages
The doctrine of ___ is an exception to the general rule that a party breaching a contract must pay for the cost of repair or replacement to put the other party in the position they would have been in had the contract been performed correctly.
Economic waste
Fraudulent
Negligent
Innocent
When there is mutual mistake Relief will likely be denied if there is an __ clause
As is
A ___ is a 3rd party beneficiary when the contract was made to satisfy a debt. Must be the intended beneficiary
Creditor
___ is a legal term, refers to the reduction in the worth or value of something, typically property, due to a specific event or circumstance, such as damage or
a breach of contract.
Diminution in value
The duty to ___ damages is a legal principle that limits the recovery of expectation damages in contract law. It requires the non-breaching party to take reasonable steps to avoid or reduce losses resulting from the breach.
Mitigate
What are the legal effects
of duress?
Voidable contract
Possible restitution
A ___ occurs when a party’s failure to perform under a contract is significant enough to excuse the other party from performing their obligations
Material Breach
Valid contract
3rd party not party to contract
Contracting parties intend to make 3rd party receive benefit
Purpose is to make a gift
Are elements of this type of beneficiary
Donee beneficiary
The formula for expectation damages
LOSS IN VALUE + OTHER LOSS −
COST AVOIDED − LOSS AVOIDED
What are the three types of damages that might not
be recoverable in breach of contract cases?
Attorney fees (American Rule)
Damage for mental distress(Exception if tort conduct)
Punitive damages (Exception if tort conduct or bad faith)