Ch 19 Remedies

Question 1

Identifying the “Interest” to Be Protected

Answer 1

-Someone breaches a contract when he fails to perform a duty without a valid excuse.
-A remedy is the method a court uses to compensate an injured party.
* remedy: A court’s compensation to the injured party
* interest: A legal right in something

There are four principal contract interests that a court may seek to protect:
+Expectation interest.
+Reliance interest
+Restitution interest.
+Equitable Interset.

Question 2

Expectation Interest

Answer 2

-The expectation interest is designed to put the injured party in the position she would have been in had both sides fully performed their obligations.

Courts typically divide the expectation damages into three parts:
1. direct (or “compensatory”) damages, which represent harm that flowed directly from the contract’s breach;
2. consequential (or “special”) damages, which represent harm caused by the injured party’s unique situation; and
3. incidental damages, which are minor costs such as storing or returning defective goods, advertising for alternative goods, and so forth. The first two, direct and consequential, are the important ones.

Question 3

Direct Damages

Answer 3

-Direct damages are those that flow directly from the contract

Question 4

Consequential Damages

Answer 4

• consequential damages: Those resulting from the unique circumstances of the injured party

-The injured party may recover consequential damages only if the breaching party should have foreseen them when the two sides formed the contract.