Damages Flashcards
Under a UCC contract for sale of goods, what is the buyers damages when the seller does not deliver or buyer rejects goods or revokes acceptance?
Contract Price - either market price or the cover price for replacement goods, plus incidental and consequential damages.
How is the market price determined?
at the time when the buyer learns of the breach.
Must the buyer make a reasonable contract for substitute goods in good faith and without unreasonable delay?
Yes, UCC-2-712
Under a UCC Contract, what is the buyers damages when the seller delivers nonconforming goods that buyer accepts?
value of the goods delivered - the value they would have had if they had been according to contract, plus incidental and consequential damages. Buyer must notify the seller within reasonable time
Under a UCC k, what if the seller anticipatorily breaches a k?
market price at the time the buyer learned of the breach - contract price
Under a UCC k, what if the buyer refuses to accept goods or anticipatorily breaches the contract? damages?
contract price - market price or contract price - resale price of a particular good, plus incidental but NOT consequential damages.
What if either k price - market price or k price -resale price do not adequately compensate the seller for the buyer’s breach?
this happens with a lost volume seller, the measure is the k price with the breaching buyer - cost to the seller.
What are the damages for a contract for the sale of land?
k price - fair market value of the land
In a construction contract, what if the owner breaches before construction started?
the builder is entitled to the profits he would have derived from the k
In a contrusction k, what if the owner breaches during the construction?
the builder is entitled to any profit he would have derived from the contract + any costs he has incurred to date.
In a construction k, what if the owner breaches after construction is completed?
builder is entitled to the full k price plus interest
In a construction k, what if the builder breaches before construction started?
the owner is entitled to the amount above the contract price that it will cost to get the building completed plus reasonable compensation for delay in performance
In a construction k, what if the builder breached during construction?
the owner is entitled to cost of completion + reasonable compensation for any delay in performance. If the completion would involve undue economic waste, the measure of damages will be the difference between the value of what the owner would have received if the builder had properly performed the contract and the value of what the owner actually received.
In a construction k, what if the builder breaches by performing late?
the owner has a right to damages for any loss incurred by not being able to use the property when performance was due. Loss of reasonable rental value when property could have been leased.
Liquidated damages clause
The parties to a contract may stipulate what damages are to be paid in the event of a breach if (i) damages are difficult to ascertain at the time the contract is formed, and (ii) the amount agreed on is a reasonable forecast of compensatory damages in the case of a breach.
