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Multiple Choice

Which remedy addresses the direct benefit of breach and involves considerations about reductions?

Damages in contract law can be limited when the breaching party gains a direct benefit from the breach. This idea is captured by limitations on damages: the value of that direct benefit is offset against the amount recoverable, so the nonbreaching party doesn’t get paid for benefits that the breaching party already gained from breaking the contract. Restitutionary remedies aim to prevent unjust enrichment by returning the benefit conferred, which is related but not about offsetting damages because of a direct benefit of the breach. Incidental damages cover extra costs arising from the breach, not the offsetting of damages due to the direct benefit. The notion of reducing damages exists, but the formal remedy category that specifically addresses this offset is limitations on damages.

Damages in contract law can be limited when the breaching party gains a direct benefit from the breach. This idea is captured by limitations on damages: the value of that direct benefit is offset against the amount recoverable, so the nonbreaching party doesn’t get paid for benefits that the breaching party already gained from breaking the contract.

Restitutionary remedies aim to prevent unjust enrichment by returning the benefit conferred, which is related but not about offsetting damages because of a direct benefit of the breach. Incidental damages cover extra costs arising from the breach, not the offsetting of damages due to the direct benefit. The notion of reducing damages exists, but the formal remedy category that specifically addresses this offset is limitations on damages.