Remedies

Question 1

Expectation Damages Definition

Answer 1

Put the party in a position that they would have been if the contract had been completed minus the cost of fully performing the contact.

Question 2

Direct General Damages

Answer 2

Money awarded for injury to or loss of the value if the performance promised in the contract. Arise naturally because did not get what bargained for.

Question 3

Measuring Direct Damages at Market Value

Buyer Breaches

Answer 3

Resale price must be reasonable under the circumstances and within reasonable price.

1. If lower, then difference between the contract and resale price.
2. If higher, may be able to recover for indirect damages.

Must be fair market value

Question 4

Measuring Direct Damages at Market Value

Seller Breaches

Answer 4

Goods: (Repudiation) market value at the time the breach was discovered minus contract price.

• Also, add incidental and consequential damages minus the expenses saved.

Cover: Replacement contract difference that is reasonable price under the circumstances and within a reasonable time after the default for comparable goods and contract price in good faith.

• If lower, may recover, indirect damages.
• If higher, then difference in price between the 2 contracts.

Question 5

Warranty Damages

Buyer

Answer 5

A buyer can accept non-conforming goods and give notice to seller of a claim for damages, the buyer then may

• recover damages for loss he reasonably incurs to be determined in a reasonable manner
• Recover damages for breach of warranty, measured by difference, at the time and place of acceptance, between the actual value of goods and the value goods they would have if they would have been warranted.

Question 6

Warrenty Damages

Seller

Answer 6

When a buyer wrongfully rejects goods or repudiates damages are measured by the difference between the market price at the time and place for tender and the contract price together with incidental damages less expenses saved as a result of the breach.

Question 7

Replacement Cost Buyer

Answer 7

(Substantial Performance)

Cost of Correction or completion, unless tgat costs is “grossly and unfairly out of proportion to good to be attained.

Question 8

Replacement Cost Seller

Question 9

Indirect Special Damages Analysis

Answer 9

1. Causation “but for”
2. Foreseeable within contemplation of parties
3. Certain
4. Unavoidable

Question 10

Incidental Damages of Breach

Seller

Answer 10

Damages include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, transportation, care and custody of goods after the buyer breaches in connection with resale.

Question 11

Incidental Damages Buyer

Answer 11

Damages include expenses incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges,, expenses or commissions in connection with effecting cover and any other reasonable expense incident to the delay or other breach.

Question 12

Anticipatory Repudiation Buyer

Answer 12

1. Learns of the repudiation
2. When learns of the repudiation plus a commercially reasonable time or
3. When performance is due.

Question 13

Anticipatory Repudiation Seller

Answer 13

Consequential Damages include:

1. Any loss from general or particular requirements and needs of which the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
2. Injury to person or property proximately resulting from any breach of warrenty.

Question 14

Calculating Expectation Damages

Answer 14

1. Describe what the non-breaching party would’ve had if the contract had been performed.
2. Describe where the non-breaching party stands now.
3. Figure out what it would take to bring the non-breaching party from where she is now to where she would’ve been had both parties performed.