Ch 1:Section 2 - Remedying Breach

Question 1

Reliance Interest

Answer 1

Measures the worsening of the promisee’s condition or if the promisee did something relying on the promise

Question 2

Restitution Interest

Answer 2

Measures the benefit given to the promisor by the promisee

- puts the promisor back in the position before the promise was made.

Question 3

Restatement 334

Answer 3

Purposes of Remedies and the Three Types of Interests

Question 4

Specific Performance

Answer 4

Compelling performance of exactly what was promised as a remedy; may not be available or may be undesired; **Rarely used or used when monetary compensation is inadequate

Question 5

Specific Performance

Answer 5

Compelling performance of exactly what was promised as a remedy; may not be available or may be undesired; **Rarely used or used when monetary compensation is inadequate

Question 6

Efficient Breach

Answer 6

You may breach a contract if it would save you money by breaching as opposed to following through with the promise
(i.e. the lawsuit is cheaper than the actual promise)

Question 7

Remedies

Answer 7

Contract damages are intended to be compensatory and NOT punitive; Damages are punitive if they put the promisor in a WORSE position than before.

Question 8

US Naval Institute V. Charter

Answer 8

** if certainty on actual damages is not possible, then a REASONABLE method of calculation is sufficient.

Question 9

Sullivan V. O’Connor

Answer 9

• • EXCEPTIONAL CASE**
• • Sullivan received Reliance and Restitution; which included pain and suffering
• • Expectation would have been too much (expectation nose)
• • Restitution would not have been enough (Dr fees)

Question 10

White v. Benkowski

Answer 10

Even if done maliciously, no punitive damages for breach of contract unless action is tortious

• if P proves actual injury/inconvenience/pecuniary damages (as assessed by the trier of fact), they will get compensatory damages
• -* Even if they cannot give exact dollar amount

Question 11

Expectation interest

Answer 11

Providing the benefit of the bargain (what did the promisee expect to gain)

Question 12

Nominative Damages

Answer 12

When a plaintiff proves breach but fails to prove damages, they are traditionally awarded nominal damages of $1; symbolic win/show of rights; may also carry award of court costs

Question 13

Punitive Damages

Answer 13

May be granted for tortious conduct that is sufficiently outrageous

Question 14

Restatement 355

Answer 14

Punitive damages are NOT recoverable for a breach of contract unless the conduct constituting the breach is also a tort for which punitive damages are recoverable

Question 15

Remedies in Practice

Answer 15

• Often favor the big business/RPs
• OSs often settle early and if they do see damages, often have to pay atty fees which does NOT put them back at expectation interest
• There are some methods to balance out the system: Class actions, statutory remedies, consumer fraud provisions
• Alternative Dispute Resolution is in place to be faster, more efficient (cheaper); Arbitration and mediation