High - Remedies

Question 1

Contracts - Legal Remedies

Answer 1

(1) expectation (2) reliance (3) consequential (4) incidental (5) restitution
Punitive = not available

Question 2

K - Expectation Damages

Answer 2

General measure of damages - arise directly from breach - puts the non-breaching party in position it would have been in but for the breach
Must be: (1) foreseeable (2) caused by D (3) certain (not too speculative) (4) unavoidable (mitigate)

Question 3

K - Reliance Damages

Answer 3

expenditures made by party in reliance with K - puts non-breaching party in position it would have been in if K never existed
Available when: (1) P acted in reliance in D’s agreement to perform (2) P’s reliance is foreseeable
If expectation damages are too speculative = reliance

Question 4

K - Consequential Damages

Answer 4

Damages caused indirectly from breach - special circumstances of injured party
Must be: (1) reasonably foreseeable at time of K (2) arise from P’s special circumstances that D knew/had reason to know (3) certain
may be limited unless unconscionable

Question 5

K - Incidental Damages

Answer 5

Reasonable costs incurred as result of breach

Question 6

K - Restitution Damages

Answer 6

awarded to prevent unjust enrichment, when one party confers a benefits onto another party
Damages = value of benefit conferred upon D
Can’t recover both expectation AND restitution

Question 7

K - Equitable Remedies

Answer 7

(1) reformation (2) rescission (3) specific performance (4) preliminary injunction (5) Constructive trust

Question 8

K - Reformation

Answer 8

K to be changed to conform to parties’ original intent

MUST have: (1) valid K (2) mutual mistake of material fact or misrepresentation

Question 9

K - Rescission

Answer 9

treats original K as cancelled
available: problem w/formation
not available if: (1) valid equitable defense applies (2) P sued for damages under K in prior action

Question 10

K - Specific Performance

Answer 10

(1) valid K exists w/clear and definite terms (2) P has performed under K or is ready, willing and able to perform (3) inadequate legal remedies (4) enforcement is feasible (5) no defenses

Question 11

K - Preliminary Injunction

Answer 11

maintain the status quo pending outcome of an action
Party must show: (1) likelihood of success on the merits (2) likely threat or irreparable harm (3) balancing of hardships in favor of moving party (4) in public interest (5) upon notice to adverse party (6) moving party gives security

Question 12

K - Constructive trust

Answer 12

used to prevent unjust enrichment resulting from wrongful conduct
Available if: (1) D wrongfully acquired titled to property (2) D would be unjustly enriched to keep property

Question 13

K - Defenses

Answer 13

(1) laches (2) unclean hands (3) mitigation (4) intentional & negligent misrepresentation

Question 14

K - Laches

Answer 14

bars P’s recovery when (1) unreasonable delay btw P’s learned of the injury/breach when action was brought (2) D is prejudiced by delay

Question 15

K - unclean hands

Answer 15

P is guilty of unethical, unlawful, or otherwise improper conduct related to subject of lawsuit

Question 16

K - Mitigation

Answer 16

party must take reasonable steps to mitigate his losses

Court will reduce total damages by amount that could have been avoided

Question 17

K - Intentional & Negligent Misrepresentation

Answer 17

Intentional: (1) misrepresentation of material fact by D (2) scienter (3) intent to induce P (4) actual and reasonable reliance by P (5) damages
Negligent: (1) misrepresentation (2) supplied for guidance in business transactions (3) D knew or should have known info was supplied to guide P (4) negligent in obtaining false info (5) actual and reasonable reliance (6) false info proximately cause P’s damage