Remedies Flashcards
What is the non-breaching party entitled to recover for breach of an installment contract?
The missing payment, or the entire K price IF K contains an acceleration clause.
When may a party recover consequential damages for breach of contract?
When a reasonable person would have foreseen the consequences as the probable result of breach, at the time the contract was made.
Breaching party must have known or had reason to know of special circumstances at the time the contract was made.
What is the goal of expectation damages?
To give the non-breaching party the “benefit of the bargain,” or what they would have expected in the contract was performed.
When are liquidated damage clauses enforceable?
1) Damages are difficult to ascertain at the time the K is formed
2) Amount agreed to is a reasonable forecast of compensatory damages in the event of breach
When may a buyer recover the cost of replacement goods under the UCC?
Where the buyer makes a reasonable K for replacement goods in GF, within a reasonable time of breach.
When may the buyer recover the market price of goods under the UCC?
When the buyer did not cover goods or covered in bad faith.
How is the market price of goods determined for purposes of awarding damages under the UCC?
For buyer: Based on the place of tender and time the buyer learned of breach OR at time of dispossession in special cases for warranty damages
For seller: Based on time and place of delivery
When may a seller assert an action for price?
When the buyer accepts goods (and doesn’t pay), when the seller is unable to sell the goods at a reasonable price, or when goods are lost/damaged and buyer bore risk
When may a buyer recover warranty damages under the UCC?
When they accept nonconforming goods, a buyer is entitled to the difference between the value of the goods as warranted and the value of the goods as delivered.
What may a seller recover if a buyer does not accept conforming goods?
If the seller resells the goods, the difference between the contract price and the resale price.
If the seller does not resell the goods or resells in bad faith, the difference between the contract price and the market price
If the seller is a “lost volume” seller (unlimited supply), lost profits.
When may a plaintiff recover on a theory of quasi-contract?
1) The plaintiff conferred a benefit on the defendant
2) The benefit was conferred with the reasonable expectation of compensation
3) The defendant had reason to know about plaintiff’s expectation of compensation
4) The defendant would be unjustly enriched if allowed to retain the benefit conferred by P without payment
When may parties to a contract recover restitution?
When either party has not fully performed; but a breaching party who has not fully performed is limited to the contract price less damages incurred by the other party.
When may a party recover consequential damages under the UCC?
Only the buyer may recover, if (1) the seller had reason to know of buyer’s requirements and (2) the subsequent loss could not have been prevented by cover
What are a seller’s remedies for specific performance under the UCC when the seller learns the buyer is insolvent?
The seller may reclaim the goods within 10 days of receipt, or stop delivery of goods within the possession of a carrier unless buyer tenders cash
What is required for a party to seek reformation of a contract based on mistake?
An oral agreement between the parties, an agreement to put the oral agreement in writing, and the writing does not reflect the original agreement
