6.3 REMEDIES

Question 1

WHO IS ENTITLED TO CONTRACT REMEDIES?

Answer 1

1) PARTIES TO THE CONTRACT (PRIVITY)
2) ASSIGNEE (THIRD PARTY RIGHTS)
3) BENEFICIARY RIGHTS (INTENDED + CREDITOR)

Question 2

WHAT ARE THE TYPES OF REMEDIES?

Answer 2

COMPENSATORY “MONEY” DAMAGES - MEANT TO REIMBURSE AN INJURED PARTY FOR THE ECONOMIC LOSS SUFFERED BECAUSE OF AN ACCOUNTANT BREACH OF CONTRACT.

-CONSEQUENTIAL DAMAGES - INDIRECT AND ANTICIPATED LOSSES

-LIQUIDATED DAMAGES - PREDETERMINED LOSS AGREED BY BOTH PARTIES

-NOMINAL DAMAGES - TRIVIAL SUM

-SPECIFIC PERFORMANCE - COURT ORDERING SPECIFIC TRANSFER OF THE CONTRACT’S UNIQUE SUBJECT MATTER.

-PUNITIVE DAMAGES - ENRICH THE INJURED PARTY BEYOND THE ECONOMIC POSITION OF THE ORIGINAL TRANSACTION.

-RESCISSION THE ACT OF RESCINDING(VOID) A CONTRACT AND RESTORING PARTIES TO THEIR POSITIONS PRIOR TO THE CONTRACT

Question 3

WHAT ARE THE FORMULAS FOR DAMAGES?

Answer 3

1) LIQUIDATED DAMAGES - PROVIDED (E.G., 5K FOR EVERY DAY A DELIVERY IS LATE)
2) COMPENSATORY DAMAGES = AMOUNT PAID - AMOUNT THAT SHOULD HAVE BEEN PAID + INCIDENTAL DAMAGES - DEPOSIT IF APPLICABLE

Question 4

WHAT ARE THE UCC REMEDIES FOR SELLERS?

Answer 4

1) WITHHOLD DELIVERY
2) CANCEL/RESCIND
3) RESELL
4) FILE FOR BREACH

*COMPENSATORY DAMAGES CALCULATION

Question 5

WHAT ARE THE UCC REMEDIES FOR BUYERS?

Answer 5

1) CANCEL/RESCIND
2) COVER “REASONABLE SUBSTITUTE”
3) FILE FOR BREACH

*COMPENSATORY DAMAGES CALCULATION

Question 6

WHAT IS A WARRANTY?

Answer 6

WHEN GOODS ARE SOLD, THE SELLER MAKES CERTAIN PROMISES TO THE BUYER THAT THE BUYER CAN LEGALLY ENFORCE. THESE PROMISES ARE KNOWN AS WARRANTIES.

EXPRESS WARRANTY: SPECIFIC STATEMENT MADE BY THE SELLER THAT BECOME THE BASIS FOR THE BARGAIN.

IMPLIED WARRANTY: PROMISES THAT ARE PRESENT AS A MATTER OF LAW.

Question 7

WHAT ARE THE SELLERS IMPLIED WARRANTY UNDER UCC?

Answer 7

SEE SCREENSHOT

Question 8

WHAT ARE SELLERS EXPRESS WARRANTY UNDER UCC?

Answer 8

SEE SCREENSHOT

Question 9

WHAT ARE INTENDED AND INCIDENTAL BENEFICIARIES?

Answer 9

AN INTENDED BENEFICIARY (RECEIVES BENEFIT BECAUSE THEY ARE SPECIFICALLY NAMED) HAS THE RIGHT TO ENFORCE THE CONTRACT WHILE THE INCIDENTAL BENEFICIARY DOES NOT.

THERE ARE TWO TYPES OF INTENDED BENEFICIARY,
1) DONEE BENEFICIARY: RECEIVES THE BENEFIT GRATUITOUSLY AND THEREFORE CAN ENFORCE THE CONTRACT ONLY AGAINST THE PARTY CHARGED WITH DELIVERING THE BENEFIT.

2) CREDITOR BENEFICIARY: RECEIVES THE BENEFIT AS SETTLEMENT OF A DEBT AND CAN ENFORCE THE CONTRACT AGAINST BOTH PARTIES.