Restitution/Reliance Recoveries, Specific Performance

Question 1

What are the types of monetary damages ?

Answer 1

1. Expectation Damages
2. Reliance Damages
3. Restitutionary Damages

Question 2

What are restitutionary Damages ?

Answer 2

Restores to a party the benefit conferred on the other party

Question 3

How do you calculate restitutionary damages ?

Answer 3

Measured by:

1. The reas. value or cost of the benefit conferred OR
2. Increase in the D’s wealth from having received that beenfit

Question 4

Restitution Damages - Recovery by nonbreaching party

Answer 4

Instead of seeking to enforce the K, a nonbreaching party can seek restitution

• Can recover for any benefit conferred on breaching party by way of part perf. or reliance

Question 5

When are restitutionary damages most often used?

Answer 5

In a losing contract

Question 6

When is the only time restitutionary damages are available?

Answer 6

When the aggrieved party has partly performed but not fully performed

Question 7

Restitution Damages - Recovery by breaching party

Answer 7

If P hasn’t subst. perf. & is in breach, not permitted to recover under the K

• BUT if D has benefited from the plaintiff’s perf., P can recover restitution for the benefit conferred on the D
  
  • • D’s damages for the breach

Question 8

When can the breaching party NOT recover (Exceptions)

Answer 8

Plaintiff can’t recover if:

• P’s breach was wilfull OR
• K provides that nonbreaching party may retain the value of the breaching party’s perf. as liquidated damages

Question 9

What are reliance damages?

Answer 9

Monetary award that restores the aggreived party to the position they were in b/f the K

Question 10

Restitution Damages - What is the effect if a K is unenforceable or where duty is discharged?

Answer 10

Party is entitled to restitution of any benefit conferred on the other party by way of part perf. or reliance

Question 11

How do you calculate reliance damages ?

Answer 11

Any expenditures made in prep. for perf. or in actually perf. - any loss breaching party can prove the aggrieved party would have suffered had the K been fully perf.

Question 12

When is specific performacne available?

Answer 12

When a monetary reward is considered inadequate

Question 13

What are 2 instances when monetary rewards are considered inadequate ?

Answer 13

1. Unique Objects
2. Real Property - every parcel of real prop. is considered unique

Question 14

In what Ks is specific perf. absolutely unavailable?

Answer 14

1. Contracts for personal services AND
2. Contracts requiring ongoing cooperation between the parties

Question 15

What factors are considered in determining if a legal remedy is adequate?

Answer 15

1. Difficulty in proving damages with reas. certainty
2. Hardship to D
3. Balance of the equities
4. Practicality of enforcement
5. Mutulaity of Agreement

Question 16

When is specific performance allowed under the UCC?

Answer 16

1. May be granted to buyer when the goods are rare or unique
2. Requirement contracts when not another convenient supplier

Question 17

Defenses to Specific Performance

Answer 17

Equitable Defenses - may be raised by the breaching party

• Laches - prejudicial delay in bringing the action
• Unclean Hands - nonbreaching party is guilty of some wrongdoing in the transaction at issue

Question 19

When can the nonbreaching party not recover restitution Damages ?

Answer 19

Can’t recover restitution if:

• he has fully perf. AND
• the only remaining perf. by the other party is the payment of a definite sum of money