Contracts Essay Distinctions & Damages

Question 1

Damages

Answer 1

the Plaintiff must mitigate Damages

Question 2

Expectation/CompensatoryDamages

Answer 2

put the party in rightful position before breach

Question 3

Type of Expectation Damages Calculation

Answer 3

1. Difference between K price and market price
2. Difference between K price and resale price
3. If seller has an unlimited supply and lost volume, can recover lost profits

Question 4

Incidental Damages

Answer 4

cost of substitute performance that the non-breach party incurs (as result of breach)

Question 5

Consequential Damages

Answer 5

ANY Damages reasonably foreseeable because of breach

Question 6

When can you claim Consequential Damages?

Answer 6

1. reasonably foreseeble when K was made OR notice
2. unabidable damages through reasonable efforts OR
3. damages proven with reasonable certainty

Question 7

Specific performance

Answer 7

Awarded when Contract is rare or unique

Question 8

Punitive Damages

Answer 8

Not generally allowed, (Torts - limit of 300,000 but if MALICE then no limit)

Question 9

Liquidated Damages

Answer 9

reasonable estimation of damages that MUST be closely related to actual Damages. NOT a penalty.

Question 10

Revocability of Offer Common Law (FL)

Answer 10

consideration paid, FL requires “valuable” consideration

Question 11

Consideration

Answer 11

bargained for exchange of something of legal value. in FL consideration is a benefit to one party or detriment to the other party.

Question 12

FL factors when discussing consideration

Answer 12

1. meeting of the minds
2. intent to be bound
3. mutual promises

Question 13

Divisible Contracts

Answer 13

created when:

1. the performance is divided into 2 or more parts
2. # of parts due by each party is the same
3. performance of each part by one party is equal to corresponding part by other party