DAMAGES

Question 1

Monetary Damages:

Expectation Interest

Answer 1

Puts P in position as if K was not breached.

Question 2

Monetary Damages:

Reliance Interest

Answer 2

Puts P in same dollar position as if K was not breached.

Question 3

Monetary Damages:

Restitution Interest

Answer 3

Prevents D’s unjust enrichment.

Question 4

Damages for Sale of Goods

Answer 4

1) S breaches/B keeps – difference between value of goods delivered and fair market value had they been perfect.
2) S breaches/S keeps – difference between K price and either market price or cost of replacement.
3) B breaches/B keeps – S recovers K price.
4) B breaches/S keeps – Difference between market and K price.

Question 5

Incidental Damages

Answer 5

Cost for finding replacement.

Question 6

Foreseeable Consequential Damages

Answer 6

Damages from P’s special circumstances, only if D had reason to know of special circumstances.

Question 7

Limitations on Damages

Answer 7

Avoidable damages: P must mitigate.

Certainty: Loss must be proved with reasonable certainty.

Question 8

Liquidated Damages

Answer 8

K fixes amount of damages.

Valid if: Damages difficult to ascertain & reasonable forecast.