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A new supermarket is being built. The county has required the owner to designate at least eight handicap parking spaces. The county installed a sign in front of each space to indicate that it is reserved for vehicles with a proper sticker. The sign also announces a $250 fine for violators. Ethically, it seems as though the punishment is well out of proportion for the transgression. However, it seems as though it is worth the harm done to a few rule breakers if the punishment prevents others from parking there. In other words, the "good" to the general community outweighs the harm of the severe individual penalty. The philosophy that supports this is:
Good Faith
Good Faith is the concept of acting with honesty and sincerity without any intention to defraud or seek unfair advantage.
Consequential Damages
Losses suffered as a consequence of a breach of contract, not directly caused by the breach but resulting from the specific circumstances of the affected party.
Liquidated Damages
A contractual provision that specifies a predetermined amount of money that must be paid as damages in the event of a breach of contract.
Anticipatory Repudiation
A party's declaration to not fulfill their obligations under a contract before the performance is due.
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