Remedies Flashcards
Damages
- Reasonable certain - cannot be speculative
- Foreseeable - damages that arise and occur in the natural course of events from any breach
- Unavoidable (duty to mitigate) - no breaching party cannot recover damages that could have been avoided with reasonable effort
- must be comparable
Article 2
- no obligation for an injured buyer to “cover” or buy substitute goods
- no obligation of an injured seller to resell the goods
Expectation Damages
Damages based on what no breaching party expected to get from K - can be $ or replacement
Ex: bride ordered veil for $400 but they lost her order. she bought another veil from a different place for $500. her expectation damages was $100
Incidental Damages
Costs reasonably incurred as natural consequence of any breach
Ex: transportation fees
Consequential Damages
Losses resulting from particular circumstances
Must show breaching party knew or should have known about the circumstances at the time K was made - unforeseeable
Reliance Damages
Losses suffered in reasonable reliance on K
Reimburse plaintiff for detriment incurred
Liquidated Damages
Damages set out in advance in K
Enforceable in K IF:
1. actual damages that will result from breach must be difficult to predict at time of K
2. amount must be reasonable forecast of actual damages that will result (PENALTY)
- no punitive damages
Ex: $5,000 forfeited to seller if buyer does not tender the remainder of purchase price
Cover
After seller’s breach, buyer purchases replacement goods
Resale of Goods
If seller is a merchant, they can get damages for the profit they would’ve received
Warranties
Express and implied promises by seller about the goods sold
Warranty Damages
Difference between value of goods as they are and value of goods if they had been as promised
Cure: buyer demands correct good to be sent
Specific Performance
- no amount of $ can restore plaintiff
- legal remedy inadequate
- not unduly burdensome to courts
- K terms are certain and definite
Most likely to occur:
- land sale - all land is considered unique
- sale of unique goods - sentimental value
no specific performance for personal services, even if rare or unique
Reformation
Seeks to revise a written K to reflect the true intentions of parties
Available for:
1. mistake
2. fraudulent misrepresentation: party misrepresents contents of K and other party relies
Restitution
Courts use to prevent unjust enrichment or when there is no K between the parties
