VI. Remedies Flashcards
What is the first rule you should state for monetary damages>
Monetary Damages: In general, damages must be caused by the breach, sufficiently certain, and must have been objectively foreseeable (in the event of breach) at the time the contract was made.
What are “Expectation Damages”
Expectation damages are to put the plaintiff in the position they’d have been in had the contract been performed.
What is the FORMULA for expectation damages?
FORMULA:
(1) loss in VALUE (performance owed less any received)
(2) PLUS consequential/incidental damages
(3) LESS COSTS avoided (would have been incurred in performance)
(4) LESS LOSS avoided (i.e., by reallocation resources/time).
What are incidental damages?
Incidental damages are reasonable costs in finding replacement after breach.
What are special damages?
Special damages are REASONABLY FORSEEABLE damages due to SPECIAL NEEDS/POSITION (actual/constructive knowledge at the time of contract).
What damages are afforded for a “quasi-contract”?
Quasi-contracts arises if plaintiff has rendered performance, and prevent unjust enrichment of defendant by permitting recovery of value of benefit conferred.
Restitution damages: Restores party for benefit conferred.
Can be greater than contract rate.
Can recover property conferred to defendant only if unique and plaintiff is insolvent.
What is rescission?
Contract NOT properly formed – contract voided and rescinded.
Timing: Sue for rescission first (or the same time?) then monetary damages (if possible).
Suing for monetary damages first destroys rescission remedy.
Defenses: laches or unclean hands. Invalid defenses: negligence.
What is reformation?
Contract WAS formed (valid contract required) – court alters parties’ written agreement to conform with parties’ original intent and understanding.
Defenses: laches, unclean hands or subsequent BFP will be adversely affected.
Invalid defenses: negligence, parol evidence rule, statute of frauds, failure to read.
