Contract Legal Remedies

Question 1

Compensatory Damages

Answer 1

based on injury to P

Must show (1) causation; (2) foreseeability (at time of formation); (3) certainty; and (4) mitigation

most common is EXPECTATION measures. Could also be RELIANCE damages if promissory estoppel and allowd by the J*–but note, only get one or the other

Question 2

Consequential damages

Answer 2

OVER AND BEYOND general expectation and reliance damages. Stem from nonbreaching party’s particular circumstances

available if reasonably FORESEEABLE at the time of formation

Must communicate your potential damages

Generally lost profits, etc.

Question 3

Nominal Damages

Answer 3

allowed in K breaches

Question 4

Punitive damages

Answer 4

NOT ALLOWED in K

NOTE: if D’s conduct is WILLFUL, should always try to see fi you can characterize it as fraud to get punitive damages

Question 5

Liquidated Damages Clause

Answer 5

(1) Damages are difficult to ascertain/forecast at time of K formation; (2) amount is a reasonable forecast of what they would be

if not, invalid PENALTY

If valid, acts as a cap on damages. If Invalid, only actual damages are available

NOTE: clauses that allow for either actual or liquidated damages are invalid

Question 6

Incidental Damages

Answer 6

expenses reasonably incurred in inspection, receipt, transportation, care, custody of goods rightfully rejected, and other expenses reasonably incident to teh seller’s breach