Remedies Flashcards
Specific Performance
Requirements for the court to consider
court orders other side to perform actual K
Requirements:
(1) valid K;
(2) terms of K clear;
(3) non-breaching party has met conditions required;
(4) money damages are inadequate;
(5) feasibility; and
(6) No laches or unclean hands defense
Fraudulent Misrepresentation
(1) a false assertion of fact made knowingly, or recklessly without knowledge of its truth,
(2) with the intent to mislead the other party,
(3) that induced assent to the contract, and
(4) justifiable reliance on the misrepresentation by the adversely-affected party.
Laches
the unreasonable delay in pursuing an equitable remedy of which the plaintiff was aware or should have been aware that caused prejudice to the defendant
Unclean Hands
a defense to an equitable remedy when the party who seeks equitable relief herself engages in serious misconduct closely related to the claim
Parol Evidence Rule
Evidence of prior or contemporaneous negotiations and agreements, written or oral, that contradict or modify contractual terms is inadmissible to vary the terms of the contract if the written contract is intended as a complete and final expression of the parties.
Not a defense to the granting of reformation because can establish fraud or a mistake
Statute of Frauds
Contracts for the sale of goods worth $500 or more and promises to transfer or receive any interest in real property must be in writing and signed by the party to be charged.
Preliminary Injunction
issued before or during a trial that generally is effective until there is a final judgment by the court and is designed to maintain the status quo pending final judgment.
cannot be issued unless the defendant has been given notice of the hearing and an opportunity to be heard.
same reqs as TRO
the plaintiff typically must show
(1) irreparable harm if the PI is not granted;
(2) that the plaintiff’s hardships if the injunction is not issued will be significantly greater than the hardships on the defendant and third parties if the injunction is issued;
(3) the likelihood that the plaintiff will succeed on the merits
(4) feasibility.
TRO
an injunction for a short time (typically limited to 15 days unless extended by the court for good cause) with its primary purpose to maintain the status quo until a preliminary injunction hearing can be held
It may be issued after notice and a hearing or ex parte on a sufficient showing of urgency.
To obtain a TRO, the plaintiff typically must show
(1) irreparable harm if the TRO is not issued;
(2) that the plaintiff’s hardships if the injunction is not issued will be significantly greater than the hardships on the defendant and third parties if the injunction is issued; and
(3) the likelihood that the plaintiff will succeed on the merits.
Unilateral Mistake
mistake by one party, so reformation is based on whether the other party was aware of the mistake
If the other party is aware of the mistake and has either (1) fraudulently induced the mistaken party’s erroneous belief or (2) does nothing to correct the mistaken party’s erroneous belief, then the mistaken party may seek reformation of the contract.
If the other party was unaware of the mistake, then reformation is not available.
Reformation
court rewrites contract if mutual mistake or unilateral good-faith mistake
will not rewrite if other party doesn’t know of mistake
Rescission
What remedies are available
voidance or unmaking of contract when there us mistake of fact or fraudulent misrepresentation
may get replevin* (property back) or restitution (money back)
Constructive Trust and Equitable Lien
allows P to impose trust/lien on D’s property if D improperly possessed P’s property
constructive trust: allows tracing and P gets value that house has increased or decreased
equitable lien: P doesn’t have rights to the increase of the value of house – only to money they lost
2 Types of Remedies
legal = money damages
equitable = money can’t fix
compensatory damages
for torts:
-general (noneconomic): pain & suffering
-special (money): lost wages, medical expenses
for Ks:
Compensatory = expectation damages
-value of benefit P expected to receive
-dollar amount written in K, FMV of product/service, the K’s value
will be limited if can’t show causation, foreseeability, certainty, and unavoidable (tried to mitigate)
consequential damages
damages that result from breach of K (ex. losing business)
must show: foreseeability, causation, certainty, and unavoidable