Remedies Flashcards
What is the measure of general damages of a land sale contract?
Diff between K price and FMV at time of breach.
What is the measure of general damages of an employee breach contract?
Difference in cost to purchase same services
What is the measure of general damages of an employer breach contract?
Salary due under K less amount earned in other employment.
What is the measure of general damages of contractor breach?
Cost of completion (repair/COR) or diminution in value.
What is the measure of general damages of a contracting party (owner) breach?
Costs expended up until breach plus profit.
What are the four limits on damages?
Certainty, Causation, Foreseeability, and Mitigation
What constitutes certainty of damages?
No speculative damages. There must be reasonable certainty that loss occurred and certainty as to amount.
What constitutes causation of damages?
Damage must be caused by the breach of duty. Damages flow naturally from the breach. “But for” test.
What constitutes foreseeability of damages?
Damage must have been foreseeable to a reasonable person familiar with the circumstances (or put on special notice) a the time of formation of contract.
What constitutes mitigation (avoidable consequences)?
The law will not allow recovery for damages that could have been reasonably mitigated. Ability for the nonbreaching party to reduce damages. (e.g.e landlord should try to rent vacant unit).
What are the two way general damages are calculated and what are they?
Cost of repair: replacement costs, i.e. exactly what the nonbreaching party wanted costs
Difference in Value (DIV/Diminution in Value)
When can consequential damages be recovered?
Only if at the time of contract formation the defendant had reason to foresee the damages as a probable result of the breach.
What are five examples of consequential damages?
- lost profits arising from Collateral Contracts
- profitst expected from the other party - Breach causes plaintiff liability to a third party
- part that makes phone defective - Injury to person or property caused by the breach
- defective part that hurts someone else - Loss of use damages
- building needs to close and now profits wont be made for the expected event - Plaintiff incurs fines or government imposed fees because of breach
What are incidental damages?
Reasonable costs incurred in an effort, whether successful or not, to mitigate associated with the breach.
What is the general principle of remedies?
Compensate, Not Punish
