Remedies

Question 1

Reformation: look for

Answer 1

1) equitable remedy, court changes the contract
2) mistake in writing agreement
3) fraudulent misrepresentation as to what is in the agreement

Question 2

Reclamation

Answer 2

1) right of the unpaid seller to get goods back
2) buyer must have been insolvent at the time that it received the goods
3) seller must demand return goods within 10 days of receipt
4) UNLESS express representation of buyer before delivery then “reasonable time”
5) buyer still has goods at time of demand

Question 3

Rights of good faith purchaser in entrustment

Answer 3

1) if owner leaves goods with a person who sells goods of that kind
2) and person wrongfully sells the goods to a 3rd party
3) original owner cannot recover goods from good faith purchaser

Question 4

Measure of money damages: generally

Answer 4

expectation damages, put the plaintiff in the same position had the contract been performed

Question 5

Reliance interest

Answer 5

put plaintiff in same position had the contract never happened

Question 6

Restitution interest

Answer 6

put defendant in same economic position as if the contract had never happened to prevent unjust enrichment

Question 7

UCC: seller breaches, buyer keeps goods

Answer 7

buyer gets FMV if perfect - FMV as delivered

Question 8

UCC: Seller breaches, seller keeps goods

Answer 8

buyer gets
1) market price at time of discovery of breach - contract price
OR
2) replacement price - contract price

Question 9

UCC: buyer breaches, seller has goods

Answer 9

Seller gets
1) contract price - market price at time and place of delivery
OR
2) contract price - resale price

Question 10

UCC: buyer breaches, buyer has the goods

Answer 10

Seller gets the contract price

Question 11

Incidental damages

Answer 11

1) costs incurred in dealing with breach

2) always recoverable

Question 12

Foreseeable special damages

Answer 12

1) damages arising from plaintiff’s special circumstances

2) recoverable only if D had reason to know of them at the time of the contract

Question 13

Avoidable damages

Answer 13

1) no recovery for damages that could have been avoided without undue burden on plaintiff
2) burden of pleading and proof on defendant

Question 14

Liquidation damages

Answer 14

1) damages were difficult to forecast at time contract was made
2) provision is a reasonable forecast