Contract Remedies

Question 1

What is the Seller’s standard Remedy (if buyer breaches, seller has goods)?

Answer 1

Damages =
[K price - Resale price]

(expected profits not realized)

Question 2

What is the Seller’s standard Remedy (if buyer breaches, buyer has goods)?

Answer 2

Damages =

K price

Question 3

What is the remedy for a Lost Volume Seller?

Answer 3

Damages =

Lost profit

Question 4

What is the Buyer’s standard Remedy (if Seller breaches, Buyer has goods)?

Answer 4

Damages =
[FMV if perfect - FMV as delivered]

or
[Cost of Repair]

Question 5

What is the Buyer’s standard Remedy (if Seller breaches, Seller keeps goods)?

Answer 5

Damages = the greater of…
[FMV at discovery - K price]
or
[Replacement price - K price]

Question 6

When is Specific Performance possible

Answer 6

1. Definite and Certain Terms
2. P satisfied/performed the conditions
3. Legal Remedies are Inadequate
4. Feasible
5. Lack of Defenses
   (Laches, Unclean hands, Freedom of Speech, Hardship)

Question 7

What is required for COMPENSATORY DAMAGES to be awarded?

Answer 7

Causal
Foreseeable
Certain
Unavoidable

Question 8

When is a Liquidated Damages Clause valid?

Answer 8

If,

1) At the time of contracting, actual damages woulda been very difficult to ascertain and
2) Amount stipulated was a R forecast of the actual harm.

Question 9

What is QUASI-CONTRACT?

Answer 9

compensates for UNJUST GAIN received pursuant to an UNENFORCEABLE CONTRACT or MATERIAL BREACH.

Question 10

What is the recovery for an UNENFORCEABLE CONTRACT in QUASI CONTRACT theory?

Answer 10

depends on nature of benefit conferred.
When Benefit is…

Tangible property: SPECIFIC RESTITUTION (replevin, ejectment)

Goods/Services: value of benefit, even in excess of contract rate.

Question 11

What is the recovery for a MATERIAL BREACH under QUASI CONTRACT theory?

Answer 11

Nonbreaching party: value of BENEFIT CONFERRED, even in EXCESS of contract rate.

Breaching party: value of benefit conferred in excess of P’s damages.