Remedies Flashcards
General Rule
The damaged party recovers EXPECTATION damages —- the loss of value of the breaching party’s performance + incidental damages + consequential damages – any expenses saved as a result of the breach
** mitigation of damages is required **
Incidental Damages
Those related to avoiding the loss from the breach
Consequential Damages
Those that are foreseen at the time the contract is entered into
UCC: Seller breaches and buyer has goods
- Buyer gets the value of the goods as contracted for – the value of the goods as delivered + incidental damages + consequential damages
UCC: Seller breaches and seller has goods
- Buyer gets the difference between market price (or replacement price) and contract price + incidental + consequential damages – expenses saved
UCC: Buyer breaches and buyer has goods
Seller gets contract price
UCC: Buyer breaches and seller has goods
Seller gets the difference between the contract price and market price (or resale price) + incidental damages – expenses saved
UCC: Lost volume seller
The seller gets the lost profits + incidentals
-Seller is lost volume seller when there is an unlimited amount of the product available
Equitable remedy: Specific Performance
not usually available unless the goods are unique or if it is a land sale contract
Equitable remedy: Injunction
Tells a party to do/not do something
Injunction for noncompete clause will be granted so long as covenant is reasonable in time, scope, and geography
Equitable remedy: rescission
Undoing the contract when the contract is void or voidable because it is impossible to perform
Equitable remedy: reformation
Remedy that either party may seek when the contract does not reflect the terms that the parties agreed to
Liquidated damages
Clauses are enforced if the damages are difficult to estimate at the time the contract was made and a reasonable forecast of damages —— penalties not permitted under K law
Restitution
Plaintiff recovers the value of the benefit conferred
- may be sought when the contract is breached, when it is unenforceable, or when there is no contract
- granted in contracts that are implied in law (quasi contract), which arises when the P has conferred a benefit on the D, the plaintiff reasonably expected to be paid, and the D would be unjustly enriched otherwise