Defenses Flashcards
Incapacity
Minor can enter K, but void able at option if minor.
Florida minors ability to K
- For marriage
- Over 16 for an educational loan
- Unwed pregnant can consent to medical care relating to pregnancy or her child by any licensed Dr.
Florida incapacity
Minor cannot claim legal incapacity if he induced the party by fraudulently representing his age.
Misrepresentation
Untrue statements or assertions that relate to a material existing fact.
Can be used as offense or defense.
Covenant not to compete
Court will enforce reasonable covenants not to compete.
Re sale of business, dissolution of partnership, or use of trademark. not be enforced if:
1. Contrary to public health, safety or welfare,
2. Injunction enforces a unreasonable covenant not to compete
3. There is no showing of irreparable harm. (Fl injury not harm.)
Expectation interest
Damages based on expectations of aggrieved party.
Award money to put party in position as if the other party had performed.
* default rule
Reliance damages
Amount expended to perform the K.
* awarded when expectation damages are too hard to calculate.
General damages
Only liable for damages reasonably foreseeable from the breach.
* But not for consequential damages or unforeseeable consequences not predictable to breaching party.
Restitutionary damages
Damages are the value of the benefits conferred on the breaching party.
Election of damages
Aggrieved party chooses which damages; expectation or restititionary, but not both.
Specific performance
Applies to land Ks only. Available to both buyer and seller.
Negative injunction
Order by the court prohibiting a particular action.
Anticipatory repudiation
If repudiates before the time for performance (ie tells that he is going to breach or does something that makes him unable to perform), then the other can treat it as a breach with same remedies.
* can be retracted until the other party either relies on the repudiation or sues for breach.
Adequate assurance
Party can demand proof that the other party is capable of performing if he has reasonable grounds for insecurity.
* UCC requires a request for adequate assurance be made in writing.
Seller’s remedies under the UCC
- resale: seller may resell his goods in good faith and in a commercially reasonable manner and recover as damages the difference between the K price and the resale price.
- if he is a volume seller, he can recover the profit he would have made on that K.