Contract Remedies

Question 1

General contract damages

Answer 1

1. Law presumes to flow from breach
2. Protect P’s benefit of bargain
3. contract-market differential = usual measure of general contract damages

Question 2

Special contract damages

Answer 2

1. Within contemplation of parties at time of K
2. Forseeable
3. P must prove w/ reasonable certainty
4. avoidable consequences rule
5. Hadley v. Baxendale, Court of Exchequer Exchange, 1854

Question 3

Liquidated damages

Answer 3

1. Fair approximation of anticipated harm of breach
2. not a penalty
3. damages must be difficult to prove
4. inconvenience of otherwise obtaining a remedy
5. Court will enforce if sole remedy and valid
6. If invalid, P must prove actual damages

Question 4

Reliance contract damages

Answer 4

1. nonbreaching party’s cost of performance
2. put P in position had K not been made
3. alternative measure where expectancy too speculative or difficult to calculate
4. costs incurred by P in relying
5. also called incidental damages