BREACH OF CONTRACT AND REMEDIES

Question 1

Consequential Damages Rule

Answer 1

Consequential damages are recoverable in a breach of contract actions only if they were reasonably foreseeable at the time that the contract was entered into.

Question 2

Expectation damages for nonbreaching party Rule

Answer 2

Expectation (benefit-of-the-bargain) damages are intended to put the nonbreaching party in the same position as if the contract had been performed as agreed.

Expectation damages must be calculated with reasonable certainty. If the seller breached but acted in good faith, then damages are limited to the buyer’s out-of-pocket expenses. e

Question 3

Repudiation Rule

Answer 3

Repudiation may be retracted until the promisee acts in reliance on the repudiation, signifies acceptance of the repudiation, or commences an action for breach of contract.

Notice of the retraction must be sufficient to allow for the performance of the promisee’s obligations.

Question 4

Anticipatory repudiation Rule

Answer 4

The doctrine of anticipatory repudiation is applicable when a promisor repudiates a promise before the time for performance is due.

The repudiation must be clear and unequivocal, as opposed to merely creating insecurity.