Explain three limitations on monetary damages


To accomplish the basic purposes of contract remedies, the limitations of foreseeability, certainty, and mitigation have been imposed upon monetary damages. (a) The limitation of foreseeability is intended to ensure that damages can be taken into account at the time of contracting. The test of foreseeable damages is objective. (b) Damages are not recoverable for loss beyond an amount that the injured party can establish with reasonable certainty. This limitation is intended to ensure that damages are compensatory and not speculative. (c) The third limitation, mitigation of damages, is the doctrine that the injured party may not recover damages for loss that he could have avoided with reasonable effort and without undue risk, burden, or humiliation.

Business

You might also like to view...

When a company uses cash-basis accounting, it frequently does not keep up with

A) accounts receivable. B) accounts payable. C) prepaid expenses. D) The company keeps up with all of the above.

Business

Most of the complexities in multiparty negotiations will increase linearly, if not exponentially, as more parties, constituencies, and audiences are added.

Answer the following statement true (T) or false (F)

Business

Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective

Indicate whether the statement is true or false a. True b. False

Business

Quiz Show was a movie based upon the Twenty-One television scandal

Indicate whether the statement is true or false

Business