Imprecise Compensation; Reliance and Restitution Measures - April 10

Question 1

What is incommensurability? (DeLong)

Answer 1

The term ‘incommensurable’ means ‘to have no common measure’. The idea has its origins in Ancient Greek mathematics, where it meant no common measure between magnitudes. (Standford)

Question 2

What are damages measured by reliance? (DeLong)

Answer 2

.

Question 3

If a breach delays the use of property and the loss in value to the injured party is not proved with reasonable certainty, what may he recover? (R)

Answer 3

If a breach delays the use of property and the loss in value to the injured party is not proved with reasonable certainty, he may recover damages based on the rental value of the property or on interest on the value of the property. (348)

Question 4

If a breach results in defective or unfinished construction and the loss in value to the injured party is not proved with sufficient certainty, he may recover damages based on what? (R)

Answer 4

(a) the diminution in the market price of the property caused by the breach, or

(b) the reasonable cost of completing performance or of remedying the defects if that cost is not clearly disproportionate to the probable loss in value to him. (348)

Question 5

If a breach is of a promise conditioned on a fortuitous event and it is uncertain whether the event would have occurred had there been no breach, what may the injured party recover? (R)

Answer 5

If a breach is of a promise conditioned on a fortuitous event and it is uncertain whether the event would have occurred had there been no breach, the injured party may recover damages based on the value of the conditional right at the time of breach. (348)

Question 6

What are restitution damages? (Q)

Answer 6

Compensation granted to remedy the defendant’s unjust enrichment that occurred at the plaintiff’s expense.

Question 7

What is a losing contract? (Chinen)

Answer 7

Had there been performance, they would have lost money. Other party in breach. You would want reliance instead of expectation damages. (4/10)

Question 8

What is the cost of completion? (DeLong)

Answer 8

The non-breacher is entitled to the cost of completion unless that amount is grossly disproportionate to the value produced by completing the work. (KentLaw)

Question 9

What is diminution in value? (DeLong)

Answer 9

When the cost of completion is grossly disproportionate to the value produced by completing the work, then the non-breacher is entitled to the diminution in value, unless the breach was willful, in which case the non-breacher is entitled to the cost of completion (followed only in some jurisdictions). (KentLaw)

Question 10

What are reliance damages? (Q)

Answer 10

Contract damages awarded for breach that seek to return the plaintiff to the position she would be in if she had not relied on the promises of the breaching party. (KentLaw)