Remedies

Question 1

The party did not suffer $—— in damages.

Answer 1

Remedies are meant to compensate the non-breaching party for actual economic losses. A plaintiff in a breach of K claim can pursue expectation damages, incidental damages, and consequential damages, minus any mitigation available to the P.

Question 2

Expectation Damages

Answer 2

Expectation damages are intended to put the injured party in the same position as if the contract had been performed. They must be foreseeable and the non-breaching party must be able to prove them with reasonable certainty. To calculate expectation damages, you would subtract the contract price from the market value of performance; these damages typically equal the amount of profit that the P expected to make had the contract been performed. Here, that is clearly established as $…….

Question 3

Consequential Damages

Answer 3

Consequential damages are reasonably foreseeable losses to a non-breaching party that go beyond expectation damages, such as loss of profits.

Question 4

Incidental Damages

Answer 4

Incidental damages may be awarded to the non-breaching party as compensation for reasonable expenses incurred as a result of the other party’s breach. If P had incurred lawyers fees or professional fees to perform is part of the K then these expenses would be covered as incidental damages.

Question 5

Mitigation

Answer 5

A party to a K must avoid loss or mitigate damages to the extent possible by taking such steps as to not involve undue risk or expense.

Here, a second contract was available to P and this K would not be available to P had he performed for D. If it would have been possible for P to perform both Ks then the second K would not be mitigation. The facts were clear whether performing the second contract would involve undue risk or expense to the P. If for example, it would have taken more time for P to perform under the second contract, then P could argue that the entire profit for the 2nd K should not be considered for mitigation. Without such indication, the court will likely assume equal performance for both contracts.

P’ damages for the alleged breach are $700K. However, because P is required to mitigate his damages, the $500K from the second contract with Mr. XXX will be applied to the damages. Thus, P’s total damages due to the alleged breach are $200K.