Ch 19: Breach and remedies

Question 1

remedies

Answer 1

provides for non-breaching party

Question 2

legal remedy

Answer 2

remedy at law, monetary remedies, same as damages
goal is to make party whole again or to give them the benefit of the bargain (provide profit the party would have made)

Question 3

most common breach of contract remedy

Answer 3

damages

Question 4

when do judges go with “make whole again”

Answer 4

early in the contract

Question 5

when do judges go with “give the party the benefit of their bargain”

Answer 5

late in the contract because the party loses real prospect of profits

Question 6

compensatory damages

Answer 6

actual out of pocket damages
ex- have a deal to get 1,000,000 to ship letter to LA. Cost of letter is 24. We sue because letter doesn’t get there so compensatory damages would be 24.

Question 7

consequential damages

Answer 7

loss suffered because of breach
Ex- letter example consequential damages would be 1,000,000

Question 8

punitive damages

Answer 8

extremely rare. happens when there is a breach along with criminal activity

Question 9

is a breach of contract wrong?

Answer 9

Legal system says no. Sometimes its cheaper for breaching party to breach and pay damages than to fulfill the contract. Just an economic transaction therefore the breaching party isn’t a criminal

Question 10

mitigation of damages

Answer 10

a successful contract is where both parties cooperate and get full benefit of their bargain. Contract is “a marriage for a fixed time.” Non breaching party has a duty to not increase the damages of the other party

Question 11

magenta paint mitigation of duties example

Answer 11

Paint store delivered wrong can of paint to his house - breach of contract. However, bobby can’t dump out the paint because he has a duty to mitigate the damages of the paint store

Question 12

parker v MGM mitigation of damages example

Answer 12

MGM said parker didn’t attempt to mitigate their damages since she didn’t do a western movie when she didn’t wanna go to australia and just wanted money for original contract. Court ruled in parkers favor

Question 13

mitigation of damages rules

Answer 13

You have a duty to mitigate the breaching party’s damages as long as:
the new job is in a reasonable location and the same job

Question 14

equitable remedy

Answer 14

sometimes damages aren’t adequate remedy and they want the other party to perform

Question 15

specific performance

Answer 15

contract for land is breached- guilty party offers to pay but innocent party just wants land and doesn’t care about money so they want specific performance