JD Next Practice Exam

What legal principle allows a party to seek relief for a breach of contract?

1. Estoppel

2. Consideration

3. Promissory estoppel

4. Damages

The correct answer is: Damages

The legal principle that allows a party to seek relief for a breach of contract is centered around the concept of damages. Damages serve as a form of compensation awarded to the injured party when the other party fails to fulfill their contractual obligations. This principle is rooted in the objective of contract law, which aims to place the non-breaching party in the position they would have been in had the contract been performed as agreed. Damages can take various forms, including compensatory damages (which cover the actual loss incurred) and consequential damages (which cover indirect losses resulting from the breach). The compensation aims to remedy the financial harm caused by the breach, thereby reinforcing the expectation that contracts will be honored. In contrast, other legal principles such as estoppel, consideration, and promissory estoppel involve different aspects of contract law. For instance, estoppel prevents a party from arguing something contrary to a previous claim or fact established by law, while consideration refers to the requirement that something of value be exchanged in a contract. Promissory estoppel, on the other hand, is a doctrine that allows enforcement of a promise even in the absence of consideration when one party has relied on the promise to their detriment. While these principles play roles in contract formation