Contract Remedies

Question 1

Breach of contract recognizes three protected interests

Answer 1

• Expectancy
• Reliance
• Restitution
• In some cases the plaintiff may seek reliance damages or restitution as an alternative to expectancy damages

Question 2

General Damages

Answer 2

Flow directly and immediately as a natural consequence of the wrongful act of defendant and are without any reference to the special character, conditions, or circumstances of the plaintiff

Question 3

Special Damages

Answer 3

Do not necessarily result from the Ds act but require that the D contemplate the harm at the time of entering into the contract

Question 4

Emotional Distress Damages in Contracts

Answer 4

Generally not allowable absent a physical injury. However California does recognize emotional distress damages when the P is a direct victim of negligence

Question 5

Recovering damages from commodities with fluctuating value

Answer 5

P may set damages as the highest value reached within a reasonable time after notice of the conversion.

Question 6

Legal Remedies for misappropriation of money

Answer 6

1. Conversion- requires identification of the specific money taken (allows for punitive)
2. Quasi- Contract- waives the tort of conversion, need only show the wrongdoer was unjustly enriched

Question 7

Basic Measure of damages in a construction contract

Answer 7

The lesser of the loss of value or the cost of remedying the defect

Question 8

Recovery for emotional distress in a contract

Answer 8

Will be excluded unless the breach also caused physical injury, the exception is when the breach is of such a kind that emotional disturbance was a particular likely result.

Question 9

Liquidated damages

Answer 9

Must be difficult to measure actual damages and must be reasonable approximation at the time the contract was made.
Cant be unconscionable or against public policy.