Fidelio Corporation enters into a contract with Equi Insurance, Inc., to obtain health insurance for Fidelio employees. Equi breaches the contract. If Fidelio is awarded compensatory damages, the purpose would be to

Damon contracts to repair the turf on a soccer field for Carousel Sports Park. Damon knows that without the repair, Carousel will have to cancel an upcoming game. Damon does not perform as promised. As consequential damages, Carousel can recover

Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17,000. DA may recover

Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover

SFX Paintball Games, Inc., and Truck & Trailer Delivery Corporation sign an agree¬ment that provides for the payment of “$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti¬mate but approximately $1,000.”

Vacation Vistas, Inc., agrees to sell certain acreage to Umiko, who intends to develop a destination resort. Vacation Vistas repudiates the deal. Umiko sues Vacation Vistas and recovers dam¬ages. She can now obtain

Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to

To avoid liability for intentional injuries, Northwest Power Corporation in¬cludes in its contracts an exculpatory clause. This is

Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver. Dondi buys the appliance else¬where for $5,500. Dondi’s measure of damages is

Rural Power Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural’s cables in a certain location. Rural advances Shovel 10 percent of its cost. The parties rescind the contract. Shovel’s refund of the payment is

Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an offshore oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

Lester and Myrtle want to rescind their contract under which Lester sold an MP3 player for $40. To rescind the contract

Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within “3” days, although the parties intend “30” days. Refined cannot convince Select to amend the contract. Refined should seek

A breach of contract entitled the nonbreaching party to sue for monetary damages.

Damages are designed to punish a breaching party and deter others from similar conduct.

Compensatory damages are foreseeable damages that arise from a party’s breach of a contract.

Compensatory damages compensate an injured party for damages arising directly from the loss of a bargain caused by a breach of contract.

A party seeking to recover compensatory damages cannot also recover in¬cidental damages.

Ordinarily, the remedy for a seller’s breach of a contract for a sale of real estate is damages.

A contract may include a clause stating that no damages can be recovered for a certain type of breach.

The purpose of the doctrine of election of remedies is to permit double recovery.

The failure of one party to perform a contract entitles the other party to rescind it.

The measure of damages for breach of a construction contract depends on which party breaches and when.

A penalty provision specifies a certain amount to be paid in the event of a default or breach of contract.

Most parties settle their lawsuits for damages or other remedies prior to trial.