7. Remedies?

Question 1

Terms to Remember

Answer 1

Be Specific!
Compensate, Liquidate, UCC buy or sell.

Land employs construction, mitigate and restitution

Question 2

a. Specific performance/Injunction

Answer 2

(bargaining tool)—land, unique goods

Question 3

b. Damages

Answer 3

i. Compensatory
ii. Liquidated
iii. UCC: Buyers
iv. UCC: Sellers
v. Land
vi. Employment
vii. Construction: owner breach
viii. Construction: builder breach

Question 4

i. Compensatory damages

Answer 4

1. Expectation (benefit of the bargain)
2. Consequential (only if reasonably foreseeable)
3. Reliance (What position would party have been in had there never been contract? Party relied on the contract but cannot prove any lost profits)

Question 5

ii. Liquidated damages

Answer 5

1. Difficult to calculate actual damages

2. Amount is a reasonable forecast of the likely damages (not punitive)

Question 6

iii. UCC: Buyers

Answer 6

1. Cover
2. Diff—Contract and Market
3. Warranty damages
4. Consequential damages

Question 7

iv. UCC: Sellers

Answer 7

1. Diff—Contract and Market
2. Diff—Contract and resale
3. Lost profits (Lost Volume Seller—capacity to make sale and subjective intent to do so even without first breach)

Question 8

v. Land:

Answer 8

difference between contract price and fair market value

Question 9

vi. Employment

Answer 9

1. Employer breach: full contract price

2. Employee breach: cost to replace employee

Question 10

vii. Construction: owner breach

Answer 10

1. Before construction: anticipated profits
2. During construction: contract price minus cost of completion
3. After completion: full contract price plus interest

Question 11

viii. Construction: builder breach

Answer 11

1. Before/during construction: cost of completion plus compensation for delay
2. Late completion: value of lost use

Question 12

c. Non-breaching party has duty to

Answer 12

mitigate damages: reasonable efforts to mitigate

Question 13

d. Restitution:

Answer 13

measure of value of benefit conferred; prevents unjust enrichment; must have already rendered partial performance.

Question 14

3rd Party Beneficiaries

Answer 14

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