Remedies Flashcards
What are Remedies?
Remedies try to put the non-breaching party in as good of a position as performance would.
Within Remedies, must all damages be proven to a degree of certainty?
Yes
What if damages cannot be proven?
Then they are considered too speculative and non-recoverable.
What are Compensatory damages?
Money damages
Within Compensatory damages, what are Expectation damages?
Expectation damages–benefit of the bargain–standard measure.
In Contracts for the Sale of Goods, when are damages measured?
At the time the seller tenders the goods (or) when the buyer learns of the breach.
In Contracts for the Sale of Goods, how are Market damages calculated?
Market price minus the contract price
In Contracts for the Sale of Goods, how are Cover (substitute performance) damages calculated?
Cover (substitute performance) price minus the contract price
In Contracts for the Sale of Goods, how are Profit damages calculated?
Contract price minus party’s savings by not performing
In Contracts for the Sale of Goods, how are Resale damages calculated?
Resale price minus the contract price: non-breaching party may resell the goods, after notice is given to other party, at either a public or private sale and recover the difference between the contract price and the proceeds from the resale.
How are Compensatory damages measured with regard to contracts for the Sale of Land?
By the difference between the contract price and fair market value.
How are Compensatory damages measured with regard to employment contracts (when breach is by the employer)?
Measure of damages is the full contract price.
How are Compensatory damages measured with regard to employment contracts (when breach is by the employee)?
Measure is whatever it costs to replace the employee.
How are Compensatory damages measured with regard to construction contracts (when breach is by the owner before completion)?
The builder will be entitled to profits that would have resulted from the contract plus any costs expended.
How are Compensatory damages measured with regard to construction contracts (when breach is by the owner after completion)?
The builder will be entitled to the full contract price plus interest.
How are Compensatory damages measured with regard to construction contracts (when breach is by the builder)?
The owner will be entitled to the cost of completion plus reasonable compensation for the delay.
How are Compensatory damages measured with regard to Lost Volume Sale?
Party will be able to recover lost profit from the breaching party even if substitute performance has occurred.
With regard to a Lost Volume Sale, what must the breaching party show?
That they had the ability to satisfy both contracts.
What rule applies to Limitations on Completion/Repair Damages?
Cost of Performance Rule v. Value rule
Within Limitations on Completion Repair/Damages, the aggrieved party is entitled to the money which will permit him to complete performance unless:
The cost of completion is grossly and unfairly out of proportion to the value added. If this occurs, the measure is the difference in value.
Within Limitations on Completion Repair/Damages, what must the fact finder determine with regard to the aggrieved party?
If the aggrieved party will actually complete performance, or whether they are only interested in obtaining the best economic position.
Within Limitations on Completion Repair/Damages, where the property is held solely for investment, the court may conclude as a matter of law that the damage award cannot:
Exceed the diminution in value.
Within Limitations on Completion Repair/Damages, where the property has special significance to the owner and repair seems likely, the cost of repair may be appropriate even if:
It exceeds the diminution in value.