Contract Remedies - Legal

Question 1

Contract Remedies

Answer 1

1. THE LEGAL REMEDIES
2. THE RESTITUTIONARY REMEDIES
3. THE EQUITABLE REMEDIES

Question 2

Legal remedies are…

Answer 2

damages

Question 3

Equitable remedies are…

Answer 3

SPECIFIC PERFORMANCE
RESCISSION
REFORMATION

Question 4

Types of Legal remedies for damages:

Answer 4

1. COMPENSATORY
2. NOMINAL
3. PUNITIVE

Question 5

FIRST TYPE OF DAMAGES: COMPENSATORY
Once again, these are based on the injury to the plaintiff.
The 4 requirements

Answer 5

[(i) causation

(ii) forseeability (tested at time of formation)
(iii) certainty
(iv) mitigation

Question 6

DIRECT DAMAGES

Answer 6

Those damages that flow inherently from the wrong.
Bar Exam Tip: The most common measure of damages is the expectation measure.

Question 7

CONSEQUENTIAL DAMAGES

Answer 7

Available for related damages foreseeable at the time of formation.
Bar Exam Favorite Fact Pattern: The lost reputation fact pattern.

Question 8

SECOND TYPE OF DAMAGES: NOMINAL

Answer 8

They are allowed

Question 9

THIRD TYPE OF DAMAGES: PUNITIVE

Answer 9

They are not allowed

Question 10

Bar Exam Tip: If defendant’s conduct is willful,…

Answer 10

try to characterize it as a fruad case

Question 11

THE LIQUIDATED DAMAGES CLAUSE FACT PATTERN:
2 PART TEST FOR VALIDITY:

Answer 11

Part 1: Damages are very difficult to ascertain at time of contract formation.
Part 2: This was a reasonable forecast of what they would be. If amount is excessive this would be a “penalty.” and thus void

RESULTS:

(i) If Valid: Only liquidated amount available
(ii) If Invalid: Only actual damages available.

Question 12

Bar Exam Trick Fact Pattern:
Clause provides that one can get either actual damages or liquidated damages.

Answer 12

Invalid clause - give P their actual compensatory damages