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
