Contract Remedies: Intro and Money Damages

Question 1

In general, what are the potential remedies in contract?

Answer 1

1. Damages
2. Restitutionary Remedy - Quasi-Contract
3. Specific Performance
4. Rescission
5. Reformation

Question 2

With regards to contract, what are compensatory damages?

What are the four requirements?

Answer 2

Generally –> damages to reflect P’s expectation interest

Must be:

1. causal
2. foreseeable
3. certain
4. unavoidable

Question 3

With regards to contract compensatory damages, when is foreseeability of damages tested?

Answer 3

Damages must be foreseeable at the time K is entered into

Question 4

Are punitive damages available in contract?

Answer 4

No

Question 5

With regards to interest and attorney’s fees - what is the rule?

Answer 5

Usually statutory

Atty fees may be provided by statute OR K

Question 6

What is a liquidate damages clause?

When is it valid?

Answer 6

“liquidated damages clause” - may limit damages recoverable

1. damages must be difficult to ascertain as of time entering into K; AND
2. liquidated damages must be a REASONABLE FORECAST of actual harm

OTHERWISE –> clause is a penalty and will be void