Law of Commerce
discuss the remedies available for a breach or non-performance of a contract. include a
discussion of how damages may be limited, the difference between a deposit and a down payment, the
requirement of mitigate, and the availability of specific performance and injunction.
Breach of Contract
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In court with limited jurisdiction, the main form of remedy of the award of damages since
specific performance and rescission are equitable remedies that are given by courts of higher
jurisdiction. The limitation is that damages cannot be recovered for losses that could have been
reasonable avoided by the act of the other party or substantially ameliorated after the breach of
the contract has taken place. In addition, the award of damages can be reduced by the amount
that can be reasonably avoided if the non-breaching party fails to use reasonable diligence in
damage mitigation. Other forms of remedy include cancelation, specific performance, Quantum
Meruit, and restitution. According to Tepper (2011), the person who suffers the damages or the
breach of contract has the legal obligation to sue the other party with the aim of minimizing the
effects of such losses. The duty to mitigate works to deny recovery of any part of the damages
that could have been avoided if the other person would have acted in normal circumstances
required by the law.
The availability of specific performance is government by a set of principles to avoid its
arbitrary enforcement and possible abuse of human rights. In this regard, specific performance is
only available if it is the appropriate approach appropriate in accordance with the nature of the
facts presented in the courts. Specific performance will not be awarded if the contract was
unconscionable, the contract it too vague to be enforced, and when the specific performance is
impossible (Tepper, 2011). Injunction is an equitable remedy that can be applied in breach of a
contract by the courts compelling the other party to refrain or to continue with specific acts in the
case. Deposit and down payment are different in that the former is a consideration by the buyer
to the seller to put the property on hold while he looks for the rest and the latter is the portion of
the purchase prince that the seller pays while he seeks the financing from other sources.
Reference
LAW OF COMMERCE 3
Tepper, P. (2011). The Law of Contracts and the Uniform Commercial Code. Cengage Learning;
2 edition
