Damages Flashcards
What must be proven to show that a damage was foreseeable?
It is a normal, expected result of a breach OR the breaching party had reason to know of the special circumstances that led to the damages.
What famous British case established the need for foreseeability in damages?
Hadley v. Baxendale
A widget maker contracts with a seller to create 10 custom widgets for $100, but the seller refuses to accept them. The widget maker sells the widgets to a third party for $75. What are the maker’s damages?
$25.
A builder contracts with a homeowner to remodel his kitchen and bathroom for $25,000, with installments to be paid as each room is completed. Builder finishes the kitchen and is paid $15,000, then never shows up again. Homeowner pays a contractor $12,000 to complete the bathroom. What are the homeowner’s damages?
$2,000.
A builder contracts with a homeowner to remodel his kitchen and bathroom for $25,000, with installments to be paid as each room is completed. Builder starts the kitchen, but homeowner, annoyed by the fact that builder painted the walls with flat paint and permits his workers play loud dubstep while they are working, pays Builder $8,000 for work completed but refuses to allow the builder back into his house any longer. Homeowner later sues Builder for not completing the work in a workman-like manner. Who wins this case, and what are their expectation damages?
Builder will win, because homeowner breached by preventing him from completing the contract. He is entitled to the remainder of the contract, $17,000.
What are expectation damages?
A lost benefit that a party expected to gain from the contract.
What are incidental damages?
Costs spent trying to identify and prevent a breach.
Under the UCC, who pays a non-breaching party’s attorney’s fees?
The non-breaching party. Under the UCC, everyone typically pays their own fees.
What two elements must be proven for expectation damages?
Certainty and Foreseeability.
How do you determine reliance damages?
The difference in value between what a party was promised and what they received.
Are punitive damages ever awarded for a breach of contract?
No, unless the conduct constituting the breach is also a tort for which punitive damages are recoverable.
What is the “first blush” rule?
When determining if punitive damages are excessive, they are not excessive unless they seem excessive at the first glance OR its apparent that some improper element was taken into account by the jury in determining the amount.
