breach and damages

Question 1

Installment Contract Breach
Breach of one installment

Answer 1

• more flexibility bc of longer relationship
• The buyer may reject any installment which is non-conforming if the non-conformity substantially impairs the value of the installment and cannot be cured but if the non-conformity does not fall within subsection (3) * and the seller gives adequate assurance of its cure, the buyer must accept that installment

Question 2

Breach of the whole

Answer 2

Whenever non-conformity or default with respect to
* one or more installments *substantially impairs the value of the whole contract there is a breach of the whole

*but the aggrieved party reinstates the contract

*if he accepts a non-conforming installment without seasonably notifying of cancellation or if he brings an action with respect only to past installments or demands future performance as to future installments

Question 3

Bases for recovery of money damages (legal damages)

measuring money damages

Answer 3

• Expectation interest
• Reliance interest
• Restitution interest

Question 4

Expectation interest

Answer 4

“benefit of the bargain” difference in price btwn what they had to get bc of the breach (i.e, getting a replacement elsewhere)

Question 5

Reliance interest

Answer 5

what the party put money into bc of the contract (i.e, preparations)

Question 6

Restitution interest

Answer 6

what the party lost out on (i.e,down payments)

Question 7

Limitations on recovery

Answer 7

• Foreseeability - in order for a party to recover, the damage must be foreseeable
• mitigation/ avoidability
• Certainty of calculation

Question 8

Equitable remedies

Answer 8

• Specific performance
• Injunctive relief - prevent a party from doing something

Question 9

Damages fall into three basic categories:

Answer 9

• Direct
• Consequential
• Incidental

Question 10

Direct

Answer 10

ordinary damages that occur from a breach

Question 11

Consequential

Answer 11

(special damages) damages that occur beyond just the breach (i.e, the loss of profits) at the consequence of the breach

Question 12

Incidental

Answer 12

costs dealing with the effect of the breach (i.e, extra shipping costs)

Question 13

he aggrieved party cannot recover losses that

Answer 13

could reasonable have been avoided. Partys have a duty to avoid running up damages

Question 14

The general theory is that the injured party should be placed

Answer 14

• in the same position as if the contract had been properly perfromed
• Damages are provided to give the plaintiff the benefit of his bargain

Question 15

loss of value of a business or loss in value of its goods will is

Answer 15

recoverable as a consequential damage if it can be calculated with reasonable certainty