Ch 19 Breach of Contract and Remedies

Question 1

Hadley v Baxendale

Answer 1

Flour mill in england, Baxendale was supported to transport it the next day, but failed to resulting in lost profits -> no damages b/c not foreseeable to Baxendale that they would lose profits

Question 2

Remedy at law v in equity

Answer 2

monetary damages

when remedy at law is inadequate

Question 3

Types of damages (5)

Answer 3

compensatory, consequential, punitive, nominal, incidental

Question 4

(contract) Compensatory damages purpose + rq (2) + eq

Answer 4

compensate for loss of bargain and what was lost and proved to have arisen direcly from loss of bargain
1. there was a contract 2. breach caused damages
value of breaching party’s promised perf under contract - value o their actual performance

Question 5

incidental damages

Answer 5

expenses that are caused direcly by a breach of contract

Question 6

3 types of contracts and their eq for comepnsatory damages

Answer 6

sale of goods - maj~ = diff btwn contract and market price
sale of land - specific perf or diff btwn contract and market price of land, some states force return to state b4 contract
construction - owner breach (before = profit, during= profit + costs, after = contract + interest) contractor breach (damages from delay in perf)

Question 7

consequential damages

Answer 7

cover indirect but foreseeable losses

Question 8

punitive damages

Answer 8

no place in contract law unless actions - also tort

Question 9

nominal damages

Answer 9

recognize wrongdoing when no actual damage/fin loss results

Question 10

Mitigation of damages + examples

Answer 10

innocnet injured party - held to a duty to mitigate / reduce the damages that they suffered

rental agreements, employment cotnracts

Question 11

liquidated damages v penalties + enforceability rq

Answer 11

dollar # is paid in event of future default or breach -> enforceable
specifies amount to be paid in event of breach, penalizes, X make innocent party whole

When contract was entered, was it appanret damages would be diff to est in event o breach? Was # set a damages X a reasonable est and X excessive?

Question 12

Reformation + when it is used

Answer 12

Equitable remedy used when parties have imperfectly expressed their agreement in writing, allows acourt to rewrite contract to reflect parties true intentions

Fraud/mutual mistake present, written contract incorrectly states oral agreement, covenant not to compete

Question 13

Recovery for quasi contract

Answer 13

Quantum meruit

based on benefit recieved or detriment suffered

Question 14

Quantum meruit

Answer 14

as much as they deserve

Question 15

waiver

Answer 15

knowing relinquishment of a legal right of breach

Question 16

contract provisions limiting remedies

Answer 16

exculapaotry clauses
limitation of liability clauses
sales contracts can