Quiz 12 Flashcards
R2 344: purposes of remedies
Judicial remedies under the rules stated in this Restatement serve to protect one or more of the following interests of a promisee:
(a)his “expectation interest,” which is his interest in having the benefit of his bargain by being put in as good a position as he would have been in had the contract been performed,
(b)his “reliance interest,” which is his interest in being reimbursed for loss caused by reliance on the contract by being put in as good a position as he would have been in had the contract not been made, or
(c)his “restitution interest,” which is his interest in having restored to him any benefit that he has conferred on the other party.
R2 347 Measure of Damages in General
Subject to the limitations stated in §§ 350–53, the injured party has a right to damages based on his expectation interest as measured by
(a)the loss in the value to him of the other party’s performance caused by its failure or deficiency,
Plus (b) any other loss, including incidental or consequential loss, caused by the breach,
less (c) any cost or other loss that he has avoided by not having to perform.
R2 348(2) Alternatives to Loss in Value of Performance
(2)If a breach results in defective or unfinished construction and the loss in value to the injured party is not proved with sufficient certainty, he may recover damages based on
(a)the diminution in the market price of the property caused by the breach, or
(b)the reasonable cost of completing performance or of remedying the defects if that cost is not clearly disproportionate to the probable loss in value to him.
R2 355 Punitive Damages
Punitive damages are NOT recoverable for a breach of contract unless the conduct constituting the breach is also a tort for which punitive damages are recoverable.
R2 349 Damages Based on Reliance Interest
As an alternative to the measure of damages stated in § 347, the injured party has a right to damages based on his reliance interest, including expenditures made in preparation for performance or in performance, less any loss that the party in breach can prove with reasonable certainty the injured party would have suffered had the contract been performed.
R2 350 Avoidability as a Limitation on Damages
(1)Except as stated in Subsection (2), damages are not recoverable for loss that the injured party could have avoided without undue risk, burden or humiliation.
(2)The injured party is not precluded from recovery by the rule stated in Subsection (1) to the extent that he has made reasonable but unsuccessful efforts to avoid loss.
