Max and Lew have entered into a contract for Lew to paint Max’s house. The contract specifically states that the job was to be completed by August 25. Lew completes the job on August 26. Max has suffered no loss due to the delay. The job was otherwise done exactly to all contract requirements and specifications. If Max sues Lew for breach of contract due to the missed completion date and if the courts were to award damages, what type of damages would most likely be?

If Max sues Lew for breach of contract due to the missed completion date, the court would most likely award nominal damages. This is because Max has not suffered any actual loss or damages from the one-day delay in the completion of the painting job. Nominal damages are a small sum of money awarded to the plaintiff when a breach has occurred, but no actual monetary loss has been suffered or can be proven. They serve to recognize that a breach of contract did take place and that the plaintiff's rights were violated, despite the lack of financial harm.

Extra: Contracts are legally enforceable agreements between parties. When one party fails to fulfill their obligations under the contract, this is known as a breach of contract. The purpose of awarding damages for breach of contract is typically to put the injured party in the position they would have been in had the contract been performed as agreed.

There are several types of damages that can be awarded in breach of contract cases:

1. Compensatory Damages: These are intended to compensate the non-breaching party for the losses incurred as a result of the breach. They are designed to "make the plaintiff whole" again.

2. Consequential Damages: These damages cover losses that are not a direct result of the breach but are a foreseeable consequence of the breach when the contract was made.

3. Punitive Damages: These are intended to punish particularly egregious behavior by the breaching party and are generally rare in contract law, being more common in tort cases.

4. Nominal Damages: As in the scenario with Max and Lew, when the breach has occurred but no actual harm or financial loss has resulted, nominal damages may be awarded merely to acknowledge that the breach did violate the plaintiff's rights under the contract.

5. Liquidated Damages: Some contracts specify a certain amount of money that is to be paid in the event of a breach. This is agreed upon at the time the contract is entered into and is enforceable if it's found to be a reasonable estimate of the potential damages and not a penalty for breach.

Understanding the different types of damages can be critical for students studying contract law, as it helps them appreciate the remedies available when a breach occurs and also informs how they might draft contracts to protect against potential losses.