Contracts Damages Flashcards
Contracts
What are the big 3 contracts remedies?
- Damages
- Specific Performance
- Special Remedies
“Damn Sad Sally”
Damn Sad Sally
Expectation Damages General Rule
- Award P the benefit P expected to receive from the contract
- Designed to put the non breaching party in the position they would have been in had the contract been performed
What is the general formula for damages for a breach of contract?
Loss in value + Other Damages - Costs Avoided - Loss Avoided
Loss in value
The difference between what P expected and what they actually received
What are “other damages” in the general formula for breach of contract analysis?
- Consequentialdamages (unique/special damages)
and - Incidental Damages (Incurred as an attempt to prevent further loss. Must be reasonable).
CONTRACTS: What are the limits on expectation damages?
FUCC.
* Foreseeable
* Unavoidable
* Caused
* Certain
What are sellers damages when the seller resells the goods to another buyer?
Contract Price - Resale Price
- Note: If seller resells for the same or more than the contract price, seller gets no damages!
When are liquidated damages enforced?
Liquidated damages are enforced if
1. Damages are difficult to calculate at the time of contracting
2. The amount was a reasonable forecast of what damages would be
When are liquidated damages enforced?
Liquidated damages are enforced if
1. Damages are difficult to calculate at the time of contracting
2. The amount was a reasonable forecast of what damages would be
Reliance Damages General Rule
Reliance damages is an alternative measure of damages when the limitations prevent expectation damages from being awarded.
Legal Restitution
- Appropriate when D has derived a benefit or unjustly enriched
- Would be unfair to allow D to keep beenfit
- Fairness requires payment
- Measured by the benefit unjustly retained
Rescission
Permits a party to invalidatie a contract and restores the parties to the position they would be in if no K had been entered into
When are punitive damages allowed in contracts cases?
Not allowed unless the party’s conduct amounts to a tort
Specific Performance Elements
“VIP For Deandre”
* Valid K with Definite and Certain Terms
- Inadequate Legal Remedy ($ too speculative, insolvent D, property is unique)
*P has Performed or Satisfied her conditions (See if P performed, is ready to perform and willing, or P performance excused)
- Feasibility of Enforcement
- Defenses
Specific Performance Elements
“VIP For Deandre”
* Valid K with Definite and Certain Terms
- Inadequate Legal Remedy ($ too speculative, insolvent D, property is unique)
*P has Performed or Satisfied her conditions (See if P performed, is ready to perform and willing, or P performance excused)
- Feasibility of Enforcement
- Defenses
Laches
Defense of laches occurs when
* P unreasonably delays initiating his claim and
*The delay results in prejudice to D
TRO
Temporary Restraining order. “II Be Like No”
- Immediate Harm
*Irreperable harm
*Balance of the Hardships
- Likelihood of success on the underlying claim
- Notice/Ex Parte (P must make good faith effort to notify D.. P may seek TRO ex parte if he shows urgency/irreperable harm)
CAN ALSO NOTE BOND REQUIREMENT
Bond Requirement
The court has the discretion to require P to put up a bond to cover any losses incurred by D if P ultimately loses on the merits at trial
What are the 3 types of damages in tort?
“Damn im rich”
Damages
Injunction
Restitution
What are the types of damages in tort?
- Actual
- Nominal
- Punitive
- Other :Pure economic and emotional distress
Actual Damages
Actual damages aka compensatory.
GR: Actual damages are compensatory damages that are awarded to put P back in the position he would have been in had the tort not been committed. Two types:
- General
- Special
General and Special Damages (Torts)
(These go under the Actual Damages Heading!
Actual
-General: Compensate P for foreseeable loss (Pain and suffering)
-Specific: Used to compensate P for unforeseeable/unique damages
(Torts) Nominal Damages
Nominal damages award a small amount of money when no injury has occurred, but the defendant did not violate the law.
Nominal damages will not be given if P recovers actual damages.
Nominal damages are not allowed for negligence claims.
Punitive Damages
Punitive Damages are awarded to punish and deter the defendant and others from engaging in a specific conduct. Punitive Damages may be awarded in addition to actual damages.
Punitive damages are awarded when D acts wantonly, willfully, or maliciously.
LIMIT ON AMOUNT: Can’t exceed 10x the compensatory damages
Pure Economic loss
