Damages

Question 1

Expectancy

Answer 1

Main way of calculating damages. Places party in position they would be in had contract been completed.

Question 2

How to calculate expectency

Answer 2

Contract price-cost to complete, at its most basic.

Question 3

Reliance Damages

Answer 3

Reimburses for costs incurred in reliance on contract. Seeks to place party in position they would be in had they never entered into a contract. Fallback position if expectency unavailable, though can be obtained alongside

Question 4

When Expectency are unavailable, it is because . . .

Answer 4

Expectency damages are only available if they can be shown to a reasonable degree of certainty. Relevant in instances such as lost profits, which can be shown by expert testimony

Question 5

Consequential Damages

Answer 5

Damages incurred as a result of the breach, such as loss in sales or loss of good will.

Question 6

Incidental Damages

Answer 6

Damages incurred trying to lessen impact of the breach.

Question 7

Duty to Mitigate

Answer 7

Plaintiff’s have a duty to mitigate their damages, such as selling what they can or taking employment of like kind and quality

Question 8

Foreseeability

Answer 8

Damages must be foreseeable at the time the contract was entered into. A repair company will not be liable for a mill’s shutdown if they did not know the timely repair was necessary to keep the mill running