Lecture 10 Flashcards
Courts often grant specific performance of a land sale contract where the seller has not yet conveyed and it is the buyer who breaches
No specific performance for a contract of personal services
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
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
Specific performance for unique or unusual goods
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
Expectation damages formula
Contract price - whatever benefits P has received from not having to complete his own performance
Breaching supplier of services
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)
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
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
BUT IF EXPENDITURES HAPPENED AFTER THE CONTRACTOR KNEW THEY WILL NOT BE ADDED TO THE RECOVERY
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
The P does not have to even prove the loss in market value
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
Breaching seller of property
Difference between the contract price and the (higher) market price if any at the time of the seller’s breach