remedies

Question 1

remedies in law

Answer 1

equals damages: how much, and for what?
a. purpose: to put plaintiff in position he/she would have been in if contract had been fully performed (loss of the bargain)

Question 2

compensatory damages

Answer 2

money to compensate for harm directly caused by breach
ex. scoop contracted to sell watch for 50. Dizzy breached and refused to buy the watch, scoop sold watch for 30. He can recover 20 in compensatory damage from Dizzy, put him in the position he would have been in if dizzy had done it

Question 3

incidental damages

Answer 3

actual expenses directly caused by the breach, including cost of getting replacement performance (advertising costs)
UCC: compensatory damages = difference between market value and contract price

Question 4

consequential damages

Answer 4

damages beyond loss of contract performance caused by the consequences of the breach (mostly lost profits)
-Mill in england, shaft broke, delivery guy took an extra day you lost one day of being in business

Question 5

punitive (exemplary) damages

Answer 5

meant to punish defendant and deter others from similar bad conduct - slap defendant on wrist

• nothing to do with compensating plaintiff for injuries
• ** never available for pure breach of contract? why not- not available for contract action, can get damages for tort, not contract breach. Sometimes it makes sense to breach contract

Question 6

nominal damages

Answer 6

plaintiff receives token award if no actual harm

ex. Mike v CCC (med student) got $1, but got punitive b/c fraud tort

Question 7

mitigation of damages

Answer 7

the non-breaching party has a duty to reduce/lessen his injuries, if he can do so reasonably
example: landlord must try to find an acceptable new tenant if current tenant breaches
ex. wrongfully terminated employees must try to find new employment
failure to mitigate will result in a reduction of damages - watch, if didn’t sell for $30 would still only get 20

Question 8

liquidated damages

Answer 8

amount stated in contract to be paid in case of a future breach. enforceable if:

• damages resulting from breach appeared difficult to estimate when the parties made the contract
• the liquidated damages amount is a reasonable estimate of actual damages