6. Remedies for an Unexcused Nonperformance Flashcards
S contracts to sell Blackacre to B. S breaches. Can B get specific performance?
Yes
S contracts to sell Blackacre to B. S breaches and sells Blackacre to X, a bona fide purchaser. Can B still get specific performance?
No, because there has been a subsequent transfer to a bona fide purchaser
S contracts to sell an antique desk to B. S breaches. Can B get specific performance if she had told S that she was buying the desk for a museum although he plans to resell the desk to Conviser for a huge profit?
No, because the buyer mislead the seller
Epstein contracts with BRI to lecture for BRI. Epstein breaches. Can BRI obtain a court order requiring Epstein to lecture for BRI?
No
Epstein contracts with BRI to lecture for BRI. Epstein breaches. Can BRI obtain a court order barring Epstein from lecturing for a competing bar review course?
Yes, within the discretion of the court
When can a seller reclaim his goods from an insolvent buyer?
(i) The buyer must have been insolvent at the time that it received the goods, and
(ii) the seller demands return of goods within 10 days of receipt, and
(iii) the buyer still has goods at time of demand.
On January 15, S sells B grits on credit. The grits are delivered to B on January 22. B is insolvent on January 22. S learns of B’s financial difficulties and demands return of the grits on January 27. B still has the grits on January 27. Can S get the grits back by reclamation?
Yes
O takes her watch to S Watch Sales and Service (S) for repair. S wrongfully sells O’s watch to B, a bona fide purchaser. Can O recover her watch from B?
No, under the UCC, O is limited to her cause of action against S
How do you compute expectation damages?
(1) look to facts for dollar value of performance without breach, (2) look to facts for dollar value of performance with breach, and (3) compare the two to determine the amount of damages.
How do you compute the damages if a seller of goods breaches, when the buyer has the goods?
[Fair market value if perfect – fair market value as delivered] or [cost of repair].
How do you compute the damages if a seller of goods breaches, when the buyer doesn’t have the goods?
[market price at time of discovery of the breach – contract price] or [reasonable replacement price – contract price] whichever is greater.
How do you compute the damages when a buyer breaches, and he keeps the goods?
It is just the contract price
How do you compute the damages when a buyer breaches, and the seller has the goods?
[contract price – resale unless seller cannot resell in which case the seller can recover the contract price and in some situations provable lost profits].
When are incidental damages recoverable?
Always
When are consequential damages recoverable?
Consequential damages are limited to damages arising from P’s special circumstances and recovery of consequential damages is limited to situations in which D had reason to know of these special circumstances at the time of the contract.
