Contracts

Question 1

Expectation Ds

Answer 1

Expectation Ds put the non-B party in the place they would have been in had the contract been performed.
Cost for the non-B to obtain full performance and difference in value between substantially performed and fully performed are two measures. Courts are split as the value encourages breach.

*Look to whether B is willful, know for intended purpose, etc.

Question 2

Consequential damages

Answer 2

Consequetnial damages are additional losses resulting from a breach. They must be forseeable to be recoverable. Consequential damages are foreseeable if a reasonable person could foresee the damages as a result of the breach. Consequential damages must be ascertainable and not specualitve. Courts usually do not permit recovery of lost profits from a business not yet started. The modern trend permits recovery if there is sufficient evidence.