Expectation damages

Question 1

Class 21 recap

Answer 1

Whether the deadline of Friday is at midnight 1) 12 am Friday morning or 12 am Saturday morning.

Rule: Clarity of express terms; ambiguity; meaning; extrinsic evidence’ Permissible Evidence Rule exception.

Application: Midnight ambiguous; ordinary + technical + context; interpret against drafter; no other extrinsic evidence provided

Conclusion: 12 am Saturday

Question 2

Intro to remedies

Question 3

Types of expectation damages:

Answer 3

expectation, reliance, and restitution

Question 4

Practice hypothetical:

Question 5

Remedies at a glance

Answer 5

Expectation damages: monetary damages, Specific Performances

Reliance Damages: monetary damages

Restituion: monetary restituion and specific restitution.

Question 6

Background

Answer 6

1. accountability for failure to perform
2. flexible for given circumstances
3. Contractual terms
4. Common law/UCC

Question 7

Categories of Remedy

Answer 7

1. Monetary damages
   a. Expectation
   b. Reliance
   c. Restituion
2. Specific Performance
   a. Related: injunctions

Question 8

Reliance

Answer 8

Put the plaintiff back in the position they would have been in had there been no contract. (I WISH I NEVER MET YOU)

Question 9

Restitution

Answer 9

You are trying to right the wrong of the contract. Limit the unjust enrichment of the breacher of the contract. Put the plaintiff in the position they had been had they not entered the contract.

Question 10

Expectation:

Answer 10

Put the plaintiff in as good as position as they would have been in had the contract been fully performed.

Question 11

Sullivan v, O’Connor

Answer 11

Facts: The plaintiff got a nose job and the surgeon did not do a good job. The trial court agreed that there was a breach of contract but there was an appeal on the damages awarded to the plaintiff.

Rule: There has to be clear proof that a contract was breached before a court will consider a breach of contract claim in a medical context.

Reasoning: Restitution is too meager and reliance might be too much remedy. The court says it does not have to pick just ONE approach. Pain and suffering would not be included under expectation but covered under reliance theory.

Claims being waived: has implications on actions and certain remedies. The plaintiff waived an aspect of the remedies and the defendant is not waving anything under reliance theory.

Issue: Whether or not expectation, reliance, or restitution are the proper remedy for the context of a medical procedure.

Question 12

Standard for remedy

Answer 12

Injured party’s expectation interest.

Question 13

The benefit of the bargain principle

Answer 13

Sum of money that will put the injured party in as good a position as if the contract was performed.

Question 14

General damages

Answer 14

calculation
a) replacement cost
b) difference in value

Measure
a) land sale: contract price minus FMV at time of breach
b) employee breach: cost to purchase same services
c) Employer breach: salary due under contract minus amount earned in other employment
d) Contractor breach: cost of completion/ diminution in value
e) contracting party breach: costs expended up until breach plus profit.

Question 15

Consequential damages.

Answer 15

the defendant at the time of the contract formation had the reason to foresee that breaching this contract would do damage to the other party.

Question 16

Incidental damages elements

Answer 16

1. Reasonable costs
2. Incurred in an effort, whether successful or not, to mitigate losses
3. Losses associated with the breach

Question 17

Calculations under the different forms of remedies.

Question 18

Hypothetical Aspects: