Remedies Flashcards
List the types of Damages available when a contract has been breached?
(1) Compensatory/Expectancy (Benefit of bargain/out of pocket damages)
(2) Consequential/Future
(4) Reliance
What are the four requirements for Calculating contract damages?
Contract damages must be causal (“but for”), foreseeable (as of the time of formation), certain, and unavoidable.
What are Compensatory Expectation damages?
Persons who contract expect the other party not to breach, thus expectations damages protect their reasonable expectation by giving a party the benefit of the bargain. (out of pocket damages)
What are Consequential Future damages?
Consequential damages are the foreseeable consequences, at the time of forming the contact, as a result of the breach. (additional expenses or costs)
What are Reliance damages?
Reliance damages apply where compensatory damages, such as benefit of the bargain, are difficult to calculate. Reliance damages seek to put the plaintiff in the same position he would have occupied had he never entered the contract (e.g., recovering the cost of performance).
What damages are recoverable under the UCC?
(1) Perfect Tender Rejection
(2) Cover (Difference between contract price and market price OR cost to replace)
(3) Replevin (Seize goods back from buyer)
(4) Liquidated Damages
Under the UCC, what is the Perfect Tender Rule?
UCC Article 2 requires a perfect tender—the delivery and the conditions of the goods must be exactly as promised in the contract. A less than perfect tender by the seller generally gives the buyer the option to: (1) reject all the goods, (2) accept the goods, or (3) accept some and reject the rest of the goods, so long as the buyer acts in good faith.
Under the UCC, what is Cover?
Cover permits a buyer to find another source of the same type of goods. The buyer may then sue to recover the difference, if any, between the cost of the contract and the cost of the goods actually purchased.
Under the UCC, what is Replevin?
Replevin enables a person to get back personal property taken wrongfully or unlawfully and get compensation for resulting losses, when a buyer pays for goods and the seller fails to deliver; and either the buyer becomes insolvent or is unable to find another source for the same goods.
Under the UCC, what are Liquidated damages?
A liquidated damages clause provides a reasonable forecast of compensatory damages in the case of breach.
What Equitable Remedies are available for breach of contract?
(1) Specific Performance - only available if there is an inadequate legal remedy, all other conditions of the contract have been met, and the court can feasibly supervise performance.
(2) Rescission - the revocation or cancellation of a contract is only available when a mistake or misrepresentation has been made.
(3) Reformation - contract is rewritten in a way that better expresses the intentions of the parties, usually for obvious typographical errors or miscalculations.
