Kaplan Pgs 276-294 Remedies

Question 1

At common law, what is the remedy for breach of contract?

Answer 1

Expectation interest that is designed to put the aggrieved party where he would’ve been if the other party had properly fulfilled the contract

Question 2

Generally under the common-law if there’s been a breach of contract, a party can elect one of what three remedies?

Answer 2

– Expectation interest: put him in the position he would’ve been if the other party had fulfilled the contract
– reliance interest: the damages that put the year him in the position he was before the contract was made
– restitution: return him the value of the benefit he conferred on the breaching party

Question 3

What is the formula for expectation damages?

Answer 3

Loss of value of the breaching party’s performance plus incidental plus consequential costs minus payments received from the breaching party minus cost saved because of the breach

Question 4

What is an example of how the expectation damages formula works?

Answer 4

A general contractor repudiate a contract with a subcontractor when the subcontractors have finished. The subcontractor can get an amount equal to the contract price plus costs for storing and returning materials minus any progress payments that were already made by the general contractor and minus any money the subcontractor saved on salaries and equipment

Question 5

Generally if the cost to do the agreed performance in a breach of contract would be way more than just the difference in market value of the property without the performance, course will just give the difference in market value [strip mine in case], but in what circumstance would that not be true?

Answer 5

If the breach of the contract was wilful and the performance was not incidental to the agreement, then the damages will be the cost of completion even if it is disproportionate to the value of the performance