Remedies

Question 1

(K) Expectation Damages

Answer 1

also described as Compensatory Damages, these are the general measure of damages for a breach of contract.
For damages arising directly from the breach, aims to put the non breaching party in the position they would have been but for the breach.
To recover, the damages must be:
1) caused by the defendant (actual cause);
2) foreseeable (proximate cause);
3) certain (not speculative);
AND
4) unavoidable (duty to mitigate).

Question 2

(K) Reliance Damages

Answer 2

The expenditures made by a party in reliance of a contract, puts the non-breaching party in the position it would have been if the contract never existed.

Available when:
1) a plaintiff acted in reliance on the defendant’s agreement to perform under a contract;
AND
2) the plaintiff’s reliance was foreseeable.

Question 3

(K) Consequential Damages

Answer 3

Arise indirectly from the breach, awarded because of injured party’s special circumstances.
Damages MUST be:
1) reasonably foreseeable at the time of contract formation;
2) arise from special circumstances that the defendant knew/had reason to know of;
AND
3) reasonably certain(non speculative)

Question 4

(K) Incidental Damages

Answer 4

Reasonable costs incurred as a result of a breach of contract.

Question 5

(K) Restitution Damages

Answer 5

Restitution is awarded to prevent unjust enrichment, and is available when one party confers a benefit onto another party. Awarded based on the value of the benefit conferred upon defendant.

Expectation Damages and Restitution Damages are mutually exclusive

Question 6

(K) Specific Performance

Answer 6

Available when:
1) a valid contract exists with clear and definite terms;
2) the plaintiff has performed under the contract (or is ready/willing/able);
3) legal remedies are inadequate;
4) enforcement is feasible for the court;
AND
5) no valid equitable or contractual defenses exist.

Question 7

(T) Injunction

Answer 7

Preliminary Injunction maintains the status quo pending the outcome of an action.

The party moving for an injunction MUST SHOW:
(1) a likelihood of success on the merits;
(2) a likely threat of irreparable harm to the movant;
(3) balancing of the hardships in favor of the moving party (the harm alleged by the movant outweighs any harm to the non-moving party);

Question 8

(T) Expectation

Question 9

(T) Restitution Damages

Answer 9

Restitution is awarded to prevent unjust enrichment, and is available when one party confers a benefit onto another party. Awarded based on the value of the benefit conferred upon defendant.

Question 10

(T) Constructive Trust

Answer 10

A constructive trust is an equitable remedy used to prevent unjust enrichment resulting from wrongful conduct, such as fraud, undue influence, or breach of a fiduciary duty.
Available if a defendant:
1) wrongfully acquired title to property;
AND
2) the defendant would be unjustly enriched if allowed to keep the property.

The court will require the defendant to hold the property as a trustee, and then return it to the plaintiff.

Question 11

(T) Equitable Lien

Answer 11

Available if a defendant:
1) wrongfully acquired title to property;
AND
2) would be unjustly enriched if allowed to keep the property.

Court will force the sale of the property.

Question 12

Defenses - Unclean Hands

Answer 12

Bars recovery when a plaintiff is guilty of unethical, unlawful, or otherwise improper conduct related to the subject of the lawsuit.

Question 13

Defenses - Laches

Answer 13

Bars recovery when:
1) there is an unreasonable delay between injury/breach and bringing of action;
AND
2) the defendant is prejudiced by the delay.