Business Law

BusinessLaw

KyleBruno and X Entertainment Contract

Specificperformance of the contract

Inspecific performance, the court orders a party to perform thespecific act that is specified in the contract. This compels theparties involved to execute the contract based on the terms agreedupon. In this case, X Entertainment may not require the specificperformance of the contract. This is because, on the contract, therewas no stipulation of what would have happened when Bruno breachesthe contract in the event of argument with the other party.

Specificperformance can only be ordered on equitable grounds, taking intoconsideration all the conditions that surround a particular case. Inthis case, equitable relief will be denied to X Entertainment sinceit acted in a way that prompted Bruno not to perform. Any intentionalact that concerns cause of action violating standards of fairness andjustice is enough to prohibit any grant to equitable relief.X Entertainment created a loophole for devious conduct hence noright to obtain the specific performance of the contract. Also,according to section 9-25, if the damages caused by Bruno areinadequate, X Entertainment have no any right to order for specificperformance.

Limitations-of-liabilityclause

Limitationon liability clause specifies damages that one is obligated toprovide to the other in a contracted agreement. In the casepresented, the court will have a high likelihood of enforcing thelimitations-of-liability clause based on willful misconduct.According to the provisions of the law, willful misconduct resultswhen a person acts intentionally to cause an injury. In this case,the X Entertainment employee acted intentionally to cause injury toBruno.

Liquidateddamages provision

Theprovision on liquidated damages predetermines the amount of damagesliable to a party that breaches the contract. Accordingto the Restatement(Second) of Contracts§ 356 cmt. c (1981), no any party in a contract has the mandate todefine the validity or characterization as either penalty orliquidated damages. Courts hold that enforceable provision ofliquidated damages cannot be a penalty. Distinction betweenliquidated damages provision and contractual penalty is that, ineffect, penalty is a security of performance while the provision ofliquidated damages entails the total amount to be paid ascompensation when the contract is breached. A court evaluates thereasonableness of dollar amount outlined and challenges in provingactual damages when determining whether the provision of liquidateddamages is a penalty.

Consequential(special) damages

Consequentialdamages are the damages that occur when one party fails to meet thecontractual obligation. In the case provided, Bruno should seekconsequential damages for the profits that were lost in summer moviemarket due to breach of contract by X Entertainment. This is inaccordance to the proposition that states that special damages arerecoverable upon breach of contract by a party that knows or imputedto know that the ordinary expectancy, restitution or reliance willnot suffice so as to meet the damages resulting from the breach.

Reference

Widdowson, A. R. (2010). Business Law. Harlow: Pearson Education.