Remedies

Question 1

What are the two broad categories of remedies available?

Answer 1

Monetary and non-monetary

Question 2

What are the two forms of non-monetary damages?

Answer 2

1) Specific performance

2) Unpaid sellers right to reclaim goods under article 2.

Question 3

What is specific performance?

Answer 3

Equitable remedy available only if monetary damages inadequate to compensate injured party

Question 4

what are the two types of property that specific performance is normally good for?

Answer 4

Real property because it is unique and article 2, only available if gods are unique i.e. unable to buy elsewhere.

Question 5

Can you get specific performance for service contracts?

Answer 5

No, but you can potentially get injective relief.

Question 6

when is the unpaid seller’s right to reclaim goods not available?

Answer 6

Not available under Art. 2
EXCEPTION: Allowed if buyer was insolvent when received goods and seller makes demand w/in 10 days
EXCEPTION: seller can reclaim goods at any time if buyer misrepresented solvency to seller in writing within 3 months before delivery
Can never recover from third party

Question 7

What are the six types of monetary damages?

Answer 7

1) Punitive
2) Liquidated damages
3) Expectation damages
4) Incidental damages
5) Consequential damages
6) Avoidable damages

Question 8

Explain punitive damages

Answer 8

Never awarded for breach of contract; purpose to compensate, not punish

Question 9

Explain liquidated damages. what are the two exceptions?

Answer 9

Upheld if damages difficult to estimate and are reasonable, flexible forecast of probable damages (but cannot operate as penalty)
EXCEPTION: NY allows seller to keep downpayment in real estate contract regardless of amount if buyer breaches
EXCEPTION: NY measures reasonableness of liquidated damages at either time of formation OR breach (common law measures only at formation)

Question 10

What are expectation damages generally?

Answer 10

Expectation damages General remedy. Put injured party in as good a position as full performance. There are buyer expectation and seller expectation damages.

Question 11

Name and describe the three types of buyer expectation damages

Answer 11

1. Cover damages: cover price - contract price if buyer covers in good faith
2. Market damages: market price - contract price if buyer doesn’t cover in good faith or at all
3. Loss in value: value as promised - value delivered if buyer keeps non-conforming goods

Question 12

Name and describe the four types of seller expectation damages

Answer 12

1. Resale damages: contract price - resale price if seller resells in good faith
2. Market damages: contract price - market price if seller does not resell in good faith or at all
3. Lost profit: if seller is lost volume dealer
4. Contract price: if seller cannot resell goods

Question 13

What are incidental damages?

Answer 13

Recoverable cost to injured buyer or seller of transporting/caring for goods after breach and arranging substitute transaction

Question 14

What are consequential damages?

Answer 14

Damages special to this plaintiff reasonable foreseeable to breaching party at time of contract
NOT AVAILABLE UNDER ART. 2

Question 15

What are avoidable damages?

Answer 15

Injured party cannot recover damages he could have avoided (mitigated) with reasonable effort