Remedies

Question 1

Breach Remedies

Answer 1

Expectation Damages

Question 2

Promissory Estoppel Remedies

Answer 2

Reliance Damages

Question 3

Equity Remedies

Answer 3

Restitution

Question 4

Specific Performance availability

Answer 4

1) Money damages inadequate
2) Feasibility to adminster

Question 5

Specific Perfromance for land use contracts

Answer 5

Specific performance available b/c all land is unique

Question 6

Specific performance for goods contracts

Answer 6

Generally, specific perfromance only available if:
1) goods are unique, or
2) Buyer unable to cover (can’t find them anywhere else)

(artwork, antiques, custommade goods)

Question 7

Specific perfromance for personal services contracts

Answer 7

No specific perfoomance available, but may be able to enjoin them from working for others

Question 8

Non monetary remedies

Answer 8

1) Specific Perfromance
2) Unpaid Sellers right to recover goods

Question 9

Unpaid Sellers right to recover goods

Answer 9

Generally won’t get it under UCC. But EXCEPTION:

1) Buyer insolvnet at time of receipt AND
2) Seller demands reclamation within 10 days of receipt, AND
3) Buyer still has goods.

EXCEPTION to 10 Day limit
1) Buyer mispresents solvency
2) In writing
3) Within 3 months before delivery

Question 10

Expectation damages

Answer 10

Default money damages measure.

Put injured party in postition they’d be in had K been performed

Question 11

Reliance Damages

Answer 11

Available if expectation damages are uncertain.

Return nonbreaching party to status quo

Question 11

Restitution Damages

Answer 11

Measured by value of benefit conferred (unjust enrichment)

Question 12

Inicdental damages

Answer 12

DIRECT Costs incident to breach.

ALWAYS recoverable. Add ontop of other main types of damages.

Question 13

Incidental Damages and Forseeability

Answer 13

NOT RELATED. Forseeability does not matter. Inciental damages are ALWAYS recoverable.

Question 14

Consequential Damages

Answer 14

INDIRECT damages caused by breach. Recoverable if forseeable at time of formation.

Lost profits must be forseeable

Question 15

Punitive damages

Answer 15

Not awarded in contracts cases

Question 16

Liquidated damages clauses

Answer 16

Parties remedies themselves in the contract.

Upheld IF:
1) Damages difficult to estimate at contract formation
2) Amount is reasonable

TIP: If invariable lump sum liquidated damages clause, probably invalid

Question 17

UCC: Buyers damages if seller breaches

Answer 17

Buyer generally has three options:
1) Cover damages = Cover price - original K price (MP doesn’t matter)

2) Market damages = Market price - original K price (usually used if buyer doesn’t cover)

3) Loss in value = Value as promised - Value as delivered (used when buyer keeps nonconforming goods)

**Must cover in good faith

Consequential damages NOT AVAILABLE in UCC?

Question 18

UCC: Seller’s damages if buyer in breach

Answer 18

1) Resale damages = K price - resale price

2) Market damages = K price - market price (doesn’t resell in good faith, or doesn’t resell)

3) K price available if seller CAN’T resell goods (custom made goods)

4) Lost volume seller: Lost profits (used if seller’s volume isn’t limited)

**resale must be in good faith

Question 19

Duty to mitigate

Answer 19

Subtract damages that could’ve been avoided. They are not recoverable. Duty to mitigate.

EXCEPTION: Duty to mitigate limited to similiar/comparable subject matter