2) K Damages Flashcards
liquidated damages: enforceability reqs
1) damages difficult to ascertain
2) parties make a reasonable attempt to forecast damages
k for sale of real estate – seller breaches
difference btwn k price and FMV at time of breach (if market price is lower, no recovery)
k for sale of real estate – buyer breaches
k price and FMV on date buyer’s performance was due (as always if lower no recovery)
UCC: cover/resale: needs to be
1) good faith
2) commercially reasonable/reasonable price
3) reasonably soon after the breach – no unreasaonable delay
lost volume seller: def
seller is in business of selling goods of this kind, and has fairly unlimited supply of goods
lost volume seller rule
any time seller loses out on sale, seller is always entitled to lost profits on that sale
employment – ER breach
ee gets lost wages would have earned had he not been fired, subject to the duty to mitigate (even at CL)
employment–duty to mitigte
must take a similar job in a similar area (not obligated to take just any job)
employment – EE breach
ER: cost of finding someone else to do the job (inc extra salary if needed)
construction: breach by owner/purchaser
profits builder expected to make + cost expended so far
construction: breach by builder / contracter WORK NOT COMPLETED
additional cost to complete above the k price
construction: breach by builder / contracter WORK DONE BUT W DEFECTS
either:
1) cost to repair the minor defects/deficiencies, or
2) difference btwn k price + value of improved property
consequential damages: def
any other damages which are a foreseeable (by the breaching party–at time k formed) consequence of the breach
incidental damages: rule
ucc only! not CL
reliance damages: def
alternative method of determining damages
any expenditure made in preparation for performance or partial performance to k to date (to put back in position before k formed)
