Remedies

Question 1

what is the legal remedy for a K breach?

Answer 1

money damages

Question 2

What categories of dmgs are there?

Answer 2

what category to apply will depend on the case
1. Expectation dmgs
2. reliance dmgs
3. restitution
4. consequential dmgs
5. liquidated dmgs
6. Quantum Meruit

Question 3

Expectation Damages:

Answer 3

• goal: to Put plaintiff in a position as if K had been performed
• std: dmgs that were “Foreseeable with reasonable certainty”

Question 4

Formula - Expectation Damages:

Answer 4

Formula - Expectation Damages:
* (K price) – (Money received/saved) + (Costs)

Question 5

Reliance Damages:

Answer 5

• Put plaintiff in position he would have been PRIOR to K
• Unreimbursed costs
• NO Expectation Damages

Example:
o Jon was going to teach out in California, and now
he has unreimbursed costs because he relied on
you telling him to come out to California on June 1
to teach a class

Question 6

Restitution:

Answer 6

• Getting back any value you already gave
• Contract PARTIALLY performed
• Measured by market value of the services

Question 7

Consequential Damages:

Answer 7

• Foreseeable costs because of breach

o You don’t buy Jon’s house, now he has to pay to put it back on the market

Question 8

Liquidated Damages:

Answer 8

• Determined at time of contract
• Enforced if reasonable
• Not a penalty

Question 10

Quantum Meruit:

Answer 10

The Breaching Party can recover:
* (Reasonable value of services) –
(Damages incurred)

Question 11

UCC Seller Damages:

Answer 11

If Buyer breaches, Seller can recover:

• if Goods Delivered & Accepted = recover (K price)
• if Some/None goods Delivered = recover (K price) – (Market price)
• if Goods Resold = recover (K price) – (Resale price)
• Additionally, Incidental Damages can be gained as well

Question 12

Lost Volume Seller:

Answer 12

Seller can sell as many widgets as possible

Question 13

Lost Profits:

Answer 13

• (Expected profit) + (Costs) – (Payment for resale)

Question 14

UCC Buyer Damages:

Answer 14

If the Seller breaches, Buyer can recover:

• Purchased replacement goods = (K price) – (Cost of new goods)
• NO replacement goods = (K price) – (Market price at time of breach)
• (Incidental/Consequential Damages) – (Expenses saved)

Question 15

what are equitable remedies?

Answer 15

Equitable Remedies:
* Recoverable only when remedy at law is inadequate

Question 16

What are the 3 equitable remedies?

Answer 16

1. Specific performance
2. injunction
3. rescission

Question 17

Specific Performance:

Answer 17

• Court will make/compel a party to perform
• For UNIQUE items ONLY (land is always unique)

Question 18

Injunction:

Answer 18

• used To “prevent irreparable harm”

often used in:
* Employment contracts
* Trade secrets
* Proprietary information

Example:
o You work at McDonald’s, and you are going to move to Burger King and talk about the secret sauce

Question 19

Rescission

Answer 19

rescission allows for the cancellation of a K because there was no meeting of the minds - it is the unwinding of a K

Question 20

No meeting of the minds includes:

Answer 20

• Mistake
• Misrepresentation
• Duress
• Lack of capacity