Remedies Flashcards
Damages key words
- Benefit of the bargain
- Restitution
- Diminution in value
- Cost of repair
- Reliance (money spent)
- Consequential (indirect loss)
- Liquidated damages (agreed damages)
- Specific performance
- Fair market value
- Defective performance
- Non performance
- Costs and losses avoided
- Restitution (return)
What is the goal of damages?
Putting the non breaching party in the position they would have been in had the contract been performed/allowing them the benefit they would have gained.
How do we calculate benefit of the bargain damages?
- What was X expecting to pay? (IE what was the seller going to get? They would get the fair market value of the product. courts are looking at the fair market value)
Should client pay $1 for an apple when others will only sell for $2, in the event that you refuse to give up your apple- benefit of bargain means, you would have to give the dollar back paid for the apple, as well as an extra dollar as the market value is $2
What if the value of the product client is buying is the same as what it was being sold at (meaning the client is not getting a benefit of the bargain)?
We move on from benefit of the bargain.
If the person had bought something to go with the item which has now gone bad…we move onto reliance damages. You can recover the money spent on that item as you are relying on the seller to fulfil their side of the bargain.
If the thing is still useable. Reliance is not available
Consequential damages
Damages which surround you lose out on the profit which you would have gained should the contract have been performed.
This can be added onto the benefit of the bargain amount (if there is one)
