Remedies

Question 1

General Rule

Answer 1

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 **

Question 2

Incidental Damages

Answer 2

Those related to avoiding the loss from the breach

Question 3

Consequential Damages

Answer 3

Those that are foreseen at the time the contract is entered into

Question 4

UCC: Seller breaches and buyer has goods

Answer 4

• Buyer gets the value of the goods as contracted for – the value of the goods as delivered + incidental damages + consequential damages

Question 5

UCC: Seller breaches and seller has goods

Answer 5

• Buyer gets the difference between market price (or replacement price) and contract price + incidental + consequential damages – expenses saved

Question 6

UCC: Buyer breaches and buyer has goods

Answer 6

Seller gets contract price

Question 7

UCC: Buyer breaches and seller has goods

Answer 7

Seller gets the difference between the contract price and market price (or resale price) + incidental damages – expenses saved

Question 8

UCC: Lost volume seller

Answer 8

The seller gets the lost profits + incidentals

-Seller is lost volume seller when there is an unlimited amount of the product available

Question 9

Equitable remedy: Specific Performance

Answer 9

not usually available unless the goods are unique or if it is a land sale contract

Question 10

Equitable remedy: Injunction

Answer 10

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

Question 11

Equitable remedy: rescission

Answer 11

Undoing the contract when the contract is void or voidable because it is impossible to perform

Question 12

Equitable remedy: reformation

Answer 12

Remedy that either party may seek when the contract does not reflect the terms that the parties agreed to

Question 13

Liquidated damages

Answer 13

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

Question 14

Restitution

Answer 14

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