Lecture 10

Answer 1

Courts often grant specific performance of a land sale contract where the seller has not yet conveyed and it is the buyer who breaches

Answer 2

No specific performance for a contract of personal services

Answer 3

Court grants injunction under employment contract for preventing an employee to work for a competitor

The employer must show that the employee services are unique or extraordinary and the likely result will not be to leave the employee without other reasonable means of making a living

Answer 4

Specific performance will be granted in output and requirements contract where the item is not in ready supply and no other vendor will enter a similar fixed price long term

Answer 5

Specific performance for unique or unusual goods

Answer 6

When reliance is protected the P does not recover any part of the profits he would have made on the contract had it been completed

Answer 7

Expectation damages formula

Contract price - whatever benefits P has received from not having to complete his own performance

Question 8

Breaching supplier of services

Answer 8

Contractor-owner contract.

Contactor starts to perform and then defaults. When owner hires someone else to complete the project,the measure of damages is contract price - (sum paid to contractor) + (sum paid or owed to replacement)

Answer 9

If the formula yields a negative number ie owner has had a worst result than had the contract been performed the market value of the work done by contractor before default will be irrelevant

Answer 10

Anticipatory repudiation by recipient of services

If the repudiation occurs before the contractor has started performance or even made expenditures in preparation to perform - expectation damages or the profits contractor would have made had the contract been perfon both sides

If contractor made reliance expenditures - reliance expenditures+ anticipated profit

Answer 11

BUT IF EXPENDITURES HAPPENED AFTER THE CONTRACTOR KNEW THEY WILL NOT BE ADDED TO THE RECOVERY

Answer 12

Economic waste is rare on mbe.

P will be entitled to the cost of remedying the defect and will not be limited to the loss of market value

Answer 13

The P does not have to even prove the loss in market value

Answer 14

The reasonable certainty requirement may fail to be met where the P cannot show what his cost of completion would have been

In such case he would have to be content with reliance or restitution damages

Answer 15

Breaching seller of property

Difference between the contract price and the (higher) market price if any at the time of the seller’s breach

Answer 16

Reliance damages
Subtract amount of loss - if P would have lost money on the competed contract, most courts say his reliance recovery cannot put him in a better position than expectation damages would have put him.

Answer 17

Cannot recover as reliance damages expenditures made before the contract was signed

Answer 18

A party who substantially performs may sue for expectation damages for breach of contract if the other fails to perform. The other party has a set of or counterclaim for the damages he has suffered from the P failure to completely perform

Answer 19

Divisible contracts- a party who has substantially performed one of the parts may recover on the contract for that part. Even though he has materially breached with respect to the other portions

Answer 20

UCC gives partial restitution to breaching buyer with respect to any deposit made to the seller before the buyer breached. The seller can only keep 20 percent of the total contract price or $500 whichever amount is smaller. The balance must be refunded to the breaching party

Exception - if seller can orove actual damages the seller can offset those damages

Answer 21

Quasi contract recovery in construction cases

Breaching builder will get the lesser of the amount by which the value of the owners property has been increased and the reasonable cost to the owner

Answer 22

Construction

Breach by the owner

The builder recovers :

Before the construction - lost profits
During the construction - profits + costs
After the construction - contract price + interest

Answer 23

Breach by the builder
The owner recover :
Before the builder has started - the cost to get the job completed by someone else above the contract price + reasonable compensation for the delay

After the builder has started- the cost to get the job completed by someone else above the contract price + reasonable cost of delay

If the builder is late in performing the damages are the losses incurred

Answer 24

When there has been substantial performance of the contract and the cost of the replacement or completion would be disproportionately high compared to the economic benefit it confers, courts will measure damages by the difference between the value of the property if construction had been properly completed and the value as constructed

Answer 25