Other Damages

Question 1

Reliance Damages

Answer 1

Goal is to put the party in the economic position as if the contract had NEVER been created

Reliance = rewind

Question 2

Can you collect both reliance and expectation damages?

Answer 2

No - choose one or the other

Question 3

Restitution damages

Answer 3

Give the Plaintiff back the benefit they conferred on the Defendant

Question 4

Liquidated Damages

Answer 4

Damages specifically set out in the contract

Won’t automatically control - courts are wary:

1. MUST NOT be punitive
2. Must be reasonable amount at the time of contracting
3. Actual damages must been uncertain and difficult to prove

Question 5

Punitive damages

Answer 5

Almost NEVER allowed - only if you see a breach that’s also tort

Question 6

Specific Performance

Answer 6

The presumptive remedy for real estate (because it’s all unique), and unique goods

Otherwise, only awarded when monetary damages are considered inadequate

NOT available for personal service…

Question 7

Right of Reclamation

Answer 7

Unpaid seller can reclaim goods when buyer got something on credit but then is actually insolvent

1. buyer must be insolvent at the time of receipt of the goods
2. seller must demand the return of goods within 10 days OR within reasonable time if buyer misrepresented his solvency to the seller
3. AND buyer still has the goods