Contracts

Question 1

Liquidated damages clause

Answer 1

set amount of damages that will be paid regardless of what the actual damages are. Reasonable and enforceable if 1) the injury that caused the breach is one that was difficult or incapable of accurate estimation at the time the contract was made and 2) the damages are a reasonable forecast of the harm caused by the breach. Unenforceable if it appears to be a penalty for breaching.

Question 2

Rights of assignee against obligor

Answer 2

assignee gets whatever rights to the K their assignor had and takes subject to whatever defenses the obligor could have raised against the assignor

Question 3

Delegation of K for personal services

Answer 3

usually nondelegable - performance by delegatee constitutes material breach

Question 4

Traditional measure of damages (seller’s remedy)

Answer 4

Difference b/w contract price and market price at the time and place of delivery, less expenses saved in consequence of the buyer’s breach

Question 5

Lost volume seller

Answer 5

When the seller resells to a buyer who would have bought from the seller even if there had been no breach of the original contract, resulting in the seller’s total volume of sales reducing by one at the end of the year

Question 6

Lost volume seller damages

Answer 6

Profits the seller would have made on the additional lost sale