Contracts & Sales

Question 1

Rule for damages in breach of contract

Answer 1

The ordinary measure of damages in a breach of contract action is expectation damages, which aim to put the nonbreaching party in the position he expected to be but for the breach. Expectation damages must be foreseeable and proved with reasonable certainty.

Question 2

Rule for punitive damages in breach of contract

Answer 2

Punitive damages are not generally recoverable as an element of damages in a breach of contract action unless the breach is also a tort for which punitive damages are recoverable.

Question 3

Rule for the UCC and sale of goods

Answer 3

Article 2 of the UCC governs contracts for the sale of goods. Goods are defined as things that are movable.

Question 4

Rule for manner for contracting for sale of goods

Answer 4

A contract for the sale of goods may be made in any manner sufficient to show agreement, including conduct.

Question 5

Rule for essential elements in UCC

Answer 5

Under Article 2 of the UCC, the only essential element is quantity.

Question 6

Rule for modification of a UCC contract

Answer 6

No consideration is required for good faith modifications under Article 2 of the UCC. Good faith means honesty in fact and the observance of reasonable commercial standards in fair dealing.

Question 7

Rule for pre-existing duty rule under UCC

Answer 7

There is no pre-existing duty rule for Article 2 contracts.

Question 8

Rule for express warranties under UCC

Answer 8

Under the UCC, affirmations of fact relating to the goods create express warranties that the goods will conform to those affirmations and descriptions.