Understanding What Happens When a Contract Is Broken at Universities
When a contract is broken in a university setting, there are several important consequences to consider:
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Damages:
- The most common solution for a broken contract is called compensatory damages. This means money is paid to the person or group who was hurt by the breach. The goal is to make things right, so they end up in the same spot they would have been in if the contract had been followed. According to the National Association of College and University Attorneys (NACUA), about 70% of these cases involve damages.
- Sometimes, there are punitive damages, which are extra money awarded when the behavior was really bad. However, this is rare in contract cases, happening in only around 2% of situations.
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Specific Performance:
- In some cases, a court can force the party that broke the contract to do what they promised. This is known as specific performance. It usually happens when the item or service is special or unique, like in cases involving real estate.
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Rescission and Restitution:
- Rescission means the contract is canceled, which frees both parties from their responsibilities. About 10% of cases result in rescission.
- Restitution is about returning the affected party to where they were before the contract. This often happens when contracts are canceled.
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Injunctions:
- Courts can also issue injunctions, which are orders to stop a party from continuing to break the contract. This can be important in cases involving disputes, like those that affect university teachers or staff.
Overall, universities need to be careful when handling these legal consequences. It's important to reduce risks and ensure that their contracts are respected.