7. Remedies? Flashcards
Terms to Remember
Be Specific!
Compensate, Liquidate, UCC buy or sell.
Land employs construction, mitigate and restitution
a. Specific performance/Injunction
(bargaining tool)—land, unique goods
b. Damages
i. Compensatory
ii. Liquidated
iii. UCC: Buyers
iv. UCC: Sellers
v. Land
vi. Employment
vii. Construction: owner breach
viii. Construction: builder breach
i. Compensatory damages
- Expectation (benefit of the bargain)
- Consequential (only if reasonably foreseeable)
- Reliance (What position would party have been in had there never been contract? Party relied on the contract but cannot prove any lost profits)
ii. Liquidated damages
- Difficult to calculate actual damages
2. Amount is a reasonable forecast of the likely damages (not punitive)
iii. UCC: Buyers
- Cover
- Diff—Contract and Market
- Warranty damages
- Consequential damages
iv. UCC: Sellers
- Diff—Contract and Market
- Diff—Contract and resale
- Lost profits (Lost Volume Seller—capacity to make sale and subjective intent to do so even without first breach)
v. Land:
difference between contract price and fair market value
vi. Employment
- Employer breach: full contract price
2. Employee breach: cost to replace employee
vii. Construction: owner breach
- Before construction: anticipated profits
- During construction: contract price minus cost of completion
- After completion: full contract price plus interest
viii. Construction: builder breach
- Before/during construction: cost of completion plus compensation for delay
- Late completion: value of lost use
c. Non-breaching party has duty to
mitigate damages: reasonable efforts to mitigate
d. Restitution:
measure of value of benefit conferred; prevents unjust enrichment; must have already rendered partial performance.
3rd Party Beneficiaries
i. A non-party who receives the benefits of a contract and who may possess the right to sue under the contract.
ii. Contract must expressly state 3rd party for them to recover