damages

Question 1

expectation damages

Answer 1

standard measure of money damages; puts parties in the economic position they would be in if the K had been performed

Question 2

reliance damages

Answer 2

alternative measure used when expectation damages are too speculative; put P in the position they would have been in if the contract had never been formed

Question 3

consequential damages

Answer 3

foreseeable losses indirectly resulting from a breach; recoverable if:
1) foreseeable result of breach
2) when K was formed, D had reason to know P would suffer special/unpreventable/unexpected damages in the event of breach

Question 4

incidental damages

Answer 4

commercially reasonable expenses incurred by the non-breaching party in UCC Ks

Question 5

duty to mitigate

Answer 5

P cannot recover reasonably avoidable damages, but can recover for costs of avoiding further damages

P must refrain from incurring additional losses after receiving notice of breach

Question 6

specific performance

Answer 6

usually only available for Ks involving real estate or unique goods

Question 7

rescission

Answer 7

cancellation of a K; purpose is to restore parties to their positions before K was made

Question 8

reformation

Answer 8

remedy whereby a K is changed so that it reflects parties’ original intent

Question 9

reclamation

Answer 9

in UCC Ks, unpaid sellers may stop delivery or reclaim goods from an insolvent buyer

Question 10

restitution damages

Answer 10

arise where a party has been unjustly enriched; awarded based on value of the benefit wrongfully conferred

party cannot recover both expectation and restitution damages

Question 11

liquidated damages

Answer 11

agreed-upon K provisions that stipulate specified damages upon breach; valid only if:
1) damages are difficult to project at the time of K formation and
2) provision is a reasonable estimate of actual damages