Remedies

Question 1

Types of remedies

Answer 1

legal ($) & equitable

Question 2

Legal Remedies - Money

Answer 2

$ = expectation damages
- Expectation: to put the non-breaching party in a position had the contract been performed

default expectation damages formula: contract price – market value = expectation damages

Question 3

Legal Remedies - Liquidated Damages

Answer 3

Usually a clause in a contract
- predetermined when you enter a contract
- enforceable if reasonable (generally 10% or less of k) and not acting like a penalty / punishment

ex: late fines/penalties; down payment

Question 4

Equitable Remedies

Answer 4

No adequate remedy at law aka money won’t help you

(a) Specific Performance: Someone has to perform = K is unique (land is always unique)

(b) Injunction: stop someone from performing (prevent irreparable harm)

(c) Recission: to rescind; go back; put parties in a position prior to K
- usually when there’s not meeting of the minds
- ex: mistake; misrepresentation