Expectation Damages

Question 1

Interest in having the benefit of bargain by being put in as good a position as he would have been in had the contract been performed.

Answer 1

Expectation Damages

Question 2

The difference between value of the performance that should have been received and value of what was received.

Answer 2

Loss in value

Question 3

Incidental & Consequential damages

Answer 3

Other loss

Question 4

Includes additional costs incurred after the breach in a reasonable attempt to avoid loss
If the injured party who has not received the promised performance pays a fee to a broker in a reasonable but unsuccessful attempt to obtain a substitute, that expense is recoverable.

Answer 4

Incidental

Question 5

Losses beyond general damages that the plaintiff would never have incurred but for the breach.
Includes such items as injury to person or property caused by the breach
If services furnished to the injured party are defective and cause damage to the party’s property that loss is recoverable.

Answer 5

Consequential

Question 6

Amount saved by nonbreaching party because of not having to make expenditures that would have been incurred.

Answer 6

Cost avoided

Question 7

Amount saved by nonbreaching party by avoiding some loss.

Answer 7

Loss avoided

Question 8

Subject to the limitations stated in §§ 350-53, the injured party has a right to damages based on his expectation interest as measured by
the loss in the value to him of the other party’s performance caused by its failure or deficiency, plus
any other loss, including incidental or consequential loss, caused by the breach, less
any cost or other loss that he has avoided by not having to perform.

Answer 8

Loss in value + other loss – cost avoided – loss avoided

Question 9

Value of what was received is calculated in terms of market value.
If real property is sold within a reasonable time after the breach, the price obtained is some evidence of market value.

Answer 9

In sale of real property cases:

Question 10

the price which property will bring when it is offered for sale by an owner who is willing but under no compulsion to sell and is bought by a buyer who is will or desires to purchase but is not compelled to.

Answer 10

Fair market value

Question 11

damages for breach of an employment contract include the cost of obtaining other services equivalent to that promised but not performed, plus any foreseeable consequential damages.

Answer 11

In employment cases

Question 12

You have to use reasonable efforts to fill the position with a _____________ person.

Answer 12

comparable

Question 13

The risk that the employer cannot find a comparable person and must pay a higher salary falls on the __________.

Answer 13

employee

Question 14

The ________ __ _______ by a wrongfully discharged employee is the amount of salary agreed upon for the period of service, less the amount which the employer affirmatively proves the employee has earned or with reasonable effort might have earned from other employment.

Answer 14

measure of recovery

Question 15

An employees failure to accept_______ ___ ______ (not substantially similar) employment is not a failure to mitigate.

Answer 15

inferior or different

Question 16

we sometimes use the standard diminution of value formula (how much value has our bargain gone down due to the breach) and sometimes the cost of completion formula.

Answer 16

For construction cases

Question 17

When there has been a substantial performance of the contract made in good faith but defects exists, the correction of which would result in economic waste, courts have measured the damages as the difference between the value of the property as constructed and the value if performance had been properly completed.

Answer 17

Diminution in value formula

Question 18

In the usual case where the contractor’s performance has been defective or incomplete, the reasonable cost of _________ __ _________ is the measure.

Answer 18

replacement or completion

Question 19

include those arising from special circumstances (not normally part of such a contract) only if special circumstances were known by both parties or communicated to breaching party.

Answer 19

Expectation damages

Question 20

A plaintiff cannot hold a defendant liable for damages which need not have been incurred.

Answer 20

Mitigation

Question 21

The plaintiff must _________ damages caused by the defendant’s wrongful act.

Answer 21

mitigate

Question 22

In employment context, failure to mitigate is an __________ ________.

Answer 22

affirmative defense

Question 23

In employment context, the person claiming failure to mitigate on the plaintiff’s part must show both

Answer 23

Availability of suitable and comparable substitute employment, and
Lack of reasonable diligence on the part of the employee.

Question 24

Agreement not to compete

Courts tend not to enforce unless:

Answer 24

The seller has unique talents, knowledge, or abilities
The area the limitation will cover is reasonable (geographic limitation)
The time period of restraint is reasonable (temporal limitation).

Question 25

One party intentionally breaches the contract intending or knowing that such a breach will cause severe, unmitigable harm in the form of mental anguish, personal hardship, or substantial consequential damages.

Answer 25

Tortious Breach

Question 26

The means used to breach the contract are tortious, involving deceit or undue coercion, or

Answer 26

Tortious Breach

Question 27

________ damages are not recoverable for a breach of contract unless the conduct constituting the breach is also a tort for which punitive damages are recoverable.

Answer 27

Punitive

Question 28

Bodily harm
Serious emotional distress is particularly likely result
Express object of contract is mental and emotional well-being of one of the contracting parties.

Answer 28

Emotional Distress

Question 29

Unless otherwise required by statute, court rule, or the terms of the contract, each party pays for their own ________ _____.

Answer 29

attorney fees

Question 30

A breach is _________ if the cost of the breaching the contract is less than the cost of performing the contract – including getting the substituted performance.

Answer 30

“efficient”