Remedies Flashcards
What is the default rule for the proper measurement of damages in breach of contract cases?
The expectation interest of the aggrieved party
To compensate a party for her expectation interest, the court will calculate:
Money damages designed to put the aggrieved party where she would be if the other party had fully and properly fulfilled the contract terms
And aggrieved party may elect to secure one of two types of damages:
Expectation damages or restitutionary damages, but not both.
Define covering.
When the buyer may purchase replacement goods in good faith and without unreasonable delay and seek damages for the difference between what the buyer would have paid under the contract and what the buyer actually paid to secure cover.
If the buyer does not cover, what is the buyer entitled to do?
To contract market differential
What type of damages with the breaching party be liable for?
General damages, or those damages that would foreseeably follow from the breach. The breaching party is not liable for consequential damages or those damages that result from the particular circumstances of the aggrieved party that are unforeseeable to the breaching party.
What must the buyer show to recover consequential damages
1 The seller knew or had reason to know of the buyers general or specific requirements and needs at the time of contracting; and
2. The losses could have been prevented or further mitigated.
A liquidated damages provision is unenforceable if the court finds:
That it constitutes a penalty.
What are the three questions to determine whether a clause in a particular contract is a valid liquidated damages provision?
- Did the parties intend for the clause to operate as a liquidated damages clause or as a penalty?
Was the clause reasonable at the time of contracting in relation to the anticipated harm?
Was the clause reasonable in relation to the harm and the losses that actually occurred due to the breach?
The seller may resell her goods in good faith and in a commercially reasonable manner. What may she recover?
The difference between the contract price and the resale price.
Where the goods are unique, what may the buyer seek?
Specific performance and replevin of the goods.
What me an aggrieved party seek if expectation damages cannot be calculated with reasonable certainty?
Reliance damages.
Reliance damages.
The amount expended by the aggrieved party to perform the contract.
Restitutionary damages
Damages that allow the aggrieved party to recover the value of the benefits conferred on the breaching party.
List the one remedy available through law and the six remedies available through equity
Available through law
Money damages
Available through equity Injunction Specific performance Rescission Reformation Quiet title actions; and Partition proceedings
