Look at Nature of wrong or breach? Contract or Tort? CONTRACT:

Question 1

The prospective goal of CONTRACT damages is

Answer 1

to put the non-breaching party in the position he would have been in had the contract been performed

Question 2

UCC or C/L?

Answer 2

dont forget

Question 3

Expectation Damages

Answer 3

Damages in a contract action, which place the injured party in the same position he would have been in had he received the full benefit for which he contracted.

Question 4

Formula

Answer 4

FMV- K price =damages

Question 5

DEVIATIONS from usual formula of expectation D

Answer 5

• Lost Volume Sellers (UCC 2-708(2)
• Fraud
• Losing Contracts (RELIANCE)

Question 6

Lost Volume Sellers

Answer 6

Where seller has an unlimited supply of inventory, the rightful position is different. Courts will award lost profits (Neri)

Question 7

Fraud

Answer 7

Courts will use the benefit-of-the bargain Rule OR Out-of-pocket Rule

Question 8

Benefit of the Bargain Rule

Contract View of Fraud Damages

Answer 8

damages for fraud are measured by the:

Difference between the value of what was represented and the actual value of what is received.

Question 9

Out-of-Pocket Rule

Tort View of Fraud Damages

Answer 9

Damages for fraud are measured by the difference between what the π PAID and the ACTUAL VALUE of what the π received.

Question 10

Losing Contracts

Answer 10

Courts will award reliance damages

Question 11

RELIANCE D

Answer 11

It it is difficult to ascertain expectation damages, use Reliance. Includes:

• costs made in preparation of performance
• or costs in performance (less any loss that the party in brea ch can prove w/reas certainty that the injured party would have suffered had the contract still been performed.)