Contract 56-62 Flashcards
Under the UCC, what remedies does a seller have if a buyer breaches a contract for the sale of goods?
Withhold delivery of the goods;
Cancel;
Recover cover damages;
Recover market damages;
Recover lost profits if the seller is a lost volume seller;
Stop delivery of the goods when he discovers buyer is insolvent;
Stop delivery of a truckload when buyer breaches; OR
Replevy identified goods.
Priority: Low
Cover Damages
vs.
Market Damages
vs.
Loss-in-Value Damages
Cover: Difference in price between the contact price and price of substitute goods.
Market: Difference between the market price and contract price (used if buyer did not cover in good faith or at all).
Loss-in-Value: Difference between the value as promised and the value of the non-conforming goods (used if buyer keeps the non-conforming goods).
Priority: Medium
When will the Waste Doctrine apply?
IF:
The contractor performs in good faith, but defects nevertheless exist; AND
Remedying the defects would entail economic waste.
*In this instance, the decrease in valuebecomes the proper measure of damages.
Priority: N/A
When is Restitution awarded?
It is awarded to prevent unjust enrichment, and is available when one party confers a benefit to another party.
Damages will be awarded based on the value of the benefit conferred.
Priority: N/A
When does a novation occur?
When:
All parties to a contract,
Agree to discharge an original party to the contract, AND
Substitute a third party in the original party’s place.
Priority: Low
What is Rescission?
Recession treats the contract as canceled.
*It is available if there was a problem with contract formation (defense to formation, fraud, misrepresentation).
Priority: N/A
When will a contract NOT be rescinded?
IF:
A valid equitable defense applies; OR
The plaintiff sued for damages under the contract in a prior action.
Priority: N/A
