Remedies

Question 1

Specific performance is always available for land sales. T/F and why

Answer 1

True, because land is special

Question 2

Specific performance is available for sale of goods if:

Answer 2

Goods are unique or buyer is unable to cover

Question 3

If seller sells goods on credit then learns buyer is insolvent, seller has right to reclaim goods upon demand made within _____.

Answer 3

10 days. But this limit doesn’t apply if a misrepresentation of solvency was made in writing within 3 months before delivery

Question 4

If profits are uncertain, move from ____ damages to _____ damages, which serve to ___.

Answer 4

Expectation; reliance; put the nonbreaching party in the position they’d be in had the contract never been formed

Question 5

Incidental damages are those _____.

Answer 5

Incurred while dealing with a breach (storage fees, transportation, etc)

Question 6

Consequential damages can only be sought if the loss was _____ and usually constitute ____.

Answer 6

Reasonably foreseeable; lost profits

Question 7

Liquidated damage clauses are only allowed if: 2

Answer 7

Damages were difficult to estimate at the time of contract, and
The amount is a reasonable forecast of damages

Question 8

When buyer “covers” by buying new goods after the seller breached, the buyer gets the difference between the _____.

Answer 8

New cost of goods minus the original cost of the seller (as long as buyer gets new goods in good faith without unreasonable delay)

Question 9

Do buyer’s have to cover? If they don’t, what happens?

Answer 9

No. Can get difference between original contract and market value (if original contract is less)

Question 10

Buyer can/cannot get expectation damages when they accept nonconforming goods.

Answer 10

Can.

They can get the difference between value of goods delivered and value they would have had if they were according to contract

Question 11

When buyer repudiates, seller can: 3

Answer 11

Resell goods and get the difference between original and resale

Recover difference between market price (at time and place of delivery) and contract price

If above are inadequate because seller could have made additional sale, recover “lost profits” (difference between context price and cost to seller)

Question 12

There’s a duty to take an inferior or different employment position as part of the duty to mitigate. T/F

Answer 12

False