Remedies

Question 1

Entitled Recovery

Breach of K with Costs already Incurred

100k K value, 30k incurred, 60k to finish the job.

What recovery?
Profits + Costs Incurred

Construction Ks

Answer 1

Do the math of K value + cost to perform original K terms by non-breaching party.

K = 100k
Costs = 90k (30k + 60k)
Profit Margin = 10k (Expectation Recovery)

Entitled to Recieve: 40k
10k in Expectation Recovery AND 30k in costs already incurred due to part performance by the time breach had occurred.

Question 2

Promissory Estoppel
(Detrimental Reliance)

Answer 2

• A promise was made;
• Reasonable expectation of reliance on that promise;
• Actual reliance;
• Interests of justice requires enforcement of the promise.

Question 3

UCC: Breach of Goods Ordered, Non-Conforming Accepted

Ordered A, Received B.

Kept A but sue…

What recovery?
Warranty Damages

Answer 3

Non breaching party accepts non-conforming goods, buyer may recover warranty damages:

Difference in value between the goods accepted v. the goods anticipated. AND incidental and consequential damages.

Question 4

UCC: Breach of Goods Ordered, Non-Conforming NOT Accepted

Ordered A, Received B.

Did not accept…

What recovery?
Cover Damages

Answer 4

Non breaching party does NOT accept non-conforming goods, buyer may recover cover damages:

Difference in value between the contract price v. cost of buying conforming goods. AND incidental and consequential damages.

Question 5

Lost Profits Doctrine
“Lost Volume”

Answer 5

Bulk merchants.

You take the lost profit as their recovery. Take what are they buying it for (7k), and what are they selling it for (10k).

I.E.: 10k sale price to buyer. 2k down payment. Buyer walks away. Retailer gets at wholesale 7k.

Math is: 10k - 7k = 3k lost profit, but offset with 2k down payment = 1k total recovery for lost payment against buyer.