Remedies

Question 1

What are the types of possible remedies?

Answer 1

Money damages (expectation, reliance, and restitution)

Equitable remedies (specific performance, recission, and right of reclamation/replevin)

Question 2

What is the purpose of expectation damages and how do you calculate it?

Answer 2

Purpose: put the non-breaching party in the same economic position HAD THE CONTRACT BEEN PERFORMED

ED = (value of performance w/o breach) - (value of performance w/ breach)

Question 3

What is the purpose of reliance damages and how do you calculate it?

Answer 3

Purpose: put the non-breaching party in the same position BEFORE the contract was created

RD = + (losses that P incurred due to K)

Question 4

What is the purpose of restitution and how is it calculated?

Answer 4

Purpose: prevent unjust enrichment

R = the value of the economic benefit P conferred on D

Question 5

When is specific performance appropriate?

Answer 5

When monetary damages are considered inadequate

Presumptively available for real estate transactions but not for service Ks

Question 6

What is recission?

Answer 6

Cancelling the K

Question 7

What is the right of reclamation (replevin) and when does it apply?

Answer 7

Under the UCC, a seller may reclaim the goods sent to the buyer if either apply:

1. Insolvent buyer (seller can reclaim w/i 10 days, but this limitation doesn’t apply if buyer misrepresented solvency to seller in writing w/i past 3 months)
2. Bad checks (seller may reclaim if demand is made w/i reasonable time)