Reliance & Restitution Damages Flashcards
If you cannot prove your expectation damages with reasonable certainty and, sometimes, if you have a losing contract
Reliance Damages
Promise
Which the promisor should reasonably expect to induce action or forbearance on the part of promisee
Induces such action or forbearance
Injustice can be avoided only by enforcement of the promise.
Promissory Estoppel
Interest in having the benefit of bargain by being put in as good a position as he would have been in had the contract been performed.
Expectation Damages
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.
Reliance Damages
As an alternative to the measure of damages stated in § 347, the ______ ______ has a right to damages based on reliance interest, including expenditures made in preparation for performance or in performance, less any loss that the party in breach can prove with any reasonable certainty the injured party would have suffered had the contract been performed.
injured party
If you have a promise without an exchange (so no contract formed) and the other party relied on that promise (you meet the elements of promissory estoppel).
When to use reliance Damages
Reliance expenses are not recoverable unless the breaching party had reason to know that the loss would occur as a consequence of a breach
Foreseeability
Reliance expenses are recoverable by the plaintiff only if they were wasted and if the loss could not have been avoided. If the loss or waste of expense can be avoided (by repurposing the investment or selling for salvage value), then plaintiff cannot recover those expenses.
Mitigation:
Reliance expenses are only recoverable if they can be proven with reasonable ________.
certainty
If full performance would have resulted in a net loss, plaintiff _______ use the reliance interest.
cannot
Where _____ ______ have an opportunity to mitigate the damages, a party who has not mitigated the damages cannot reduce the damage award granted to the other party by the amount that that party would have saved had that other party mitigated.
both parties
Interest in having restored to him any benefit that he has conferred on the other party.
Restitution Damages
If the other party breached the contract, and, for some reason, the non-breaching party cannot recover its lost expectations.
If you are the breaching party, then you may seek some recovery for the value of your part performance.
If there was no contract, but one of the parties has nonetheless conferred a benefit on the other.
When to use Restitution Damages
A person who has supplied things or services to another, although acting without the other’s knowledge or consent, is entitled to restitution therefor from the other if
He acted unofficiously and with intent to charge therefor, and
the things or services were necessary to prevent the other from suffering serious bodily harm or pain, and
the person supplying them had no reason to know that the other would not consent to receiving them, if mentally competent; and
it was impossible for the other to give consent or, because of extreme youth or mental impairment, the other’s consent would have been immaterial.
Rescue of Person
A person who, although acting without the other’s knowledge or consent has preserved things belonging to another from damage or destruction, is entitled to restitution for services rendered or expenditures incurred therein, if
he was in lawful possession or custody of the things or if he lawfully took possession thereof, and the services or expenses were not made necessary by his breach of duty to the other, and
it was reasonably necessary that the services should be rendered or the expenditures incurred before it was possible to communicate with the owner by reasonable means, and
he had no reason to believe that the owner did not desire him so to act, and
he intended to charge for such services or to retain the things as his own if the identity of the owner were not discovered or if the owner should disclaim, and
the things have been accepted by the owner.
Rescue of Property