Contracts damages Flashcards
what is expectation damages?
the difference between what the non breaching party wouldve got if the contract was performed and what the non breaching party has now.
what is the lost volume seller expectation?
recover lost profit
what are incidental damages
costs incurred in dealing with the breach
such as : costs of storing rejected goods in a sale of goods or finding a replacement in a services contract.
what are foreseeable consequential damages?
special damages.
kind of loss that is special to the plaintiff. limited to situations in which D had reason to know of these special circumstances at the time of the contract
what are less avoidable damages?
no recovery for damages that could have been avoided without undue burden on plaintiff. Burdens of pleading and proof on defendant.
what is anticipatory repudiation?
unambiguous statement or conduct (1) that the repudiating party will not perform (2) made prior to the time that performance was due
time of recovery for anticipatory repudiation?
immediate claim for damages
when can anticipatory repudiation?
as long as there hasnt been a material change in position by the other party
what is the three concepts for insecurity of performance?
- reasonable grounds for security
- written demand for adequate assurance
- commercially reasonable to stop performance
what kind of breach excuses the other party from performing a contract governed by common law?
a material breach
when is there not a material breach?
if there has been substantial perofrmance
any breach has damages, but what kind of breach excuses performance?
material beach
in which situations can parole evidence be used?
- cannot be used to contradict
- defenses to the contract
- ambiguity
- conditions before contract
- mistake in integration
- partial in integration adding terms
when can a contract be rescinded?
- performance hasnt been completed
2. both parties agree
what is an accord?
if the new agreement is performed then performance of the original obligation is excused
