III. Contracts

Question 1

Purpose of K Damages

Answer 1

• put the wronged party in the same position as if the contract had been performed

Question 2

General Measure of Damages

Answer 2

• limited to
  
  • those arising directly from the breach of contract AND
  • that were in the contemplation of the parties at the time of K formation
• Consequential damages will not be recoverable unless they were contemplated at the time of formation (e.g. K for parts to build product that need to be sold by christmas time; not delivered and can’t be bought anywhere else; can’t make product; seller knew integral and uniqu nature of product; lost profits would be considerable here)

Question 3

Implied Contracts

Answer 3

• When goods or materials have been furnished by one to another or services have been rendered, law implies a promise to pay reasonable value–quantum meruit
• Measure of damages: value of good and services to the benefited party

Question 4

Duty to Mitigate

Answer 4

• P has duty to lessen the amount of loss to the damages as far as is practicable by using ordinary care and diligence

Question 5

Remote of Consequential Damages

Answer 5

• absent statutory or contracutla provision, not recoverable unless traceable solely to the breach and capable of exact computation
• LOST FUTURE PROFITS: same as in tort, must provide specifc and clear evidence that the injury caused loss of profits and what the lost profits are specifically
  
  • benefits better established companies

Question 6

Punitive Damages