Chapter 6-Damages Flashcards Preview

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Flashcards in Chapter 6-Damages Deck (31):
1

Remedies (types)

Damages, restitution, agreed damages, coercive equitable remedies.

2

Damages (goal)

To put π in position they would have been if the contract had not been breached. (post-performance position)

3

Calculating Damages

Look to measure of and limitations on damages.

4

General Damages (Types)

Award of loss of value, cost of what π was promised, or profit expected.

5

Non-Performance (measure for π)

damages=FMV-k price (get-give)

6

Non-Performance (measure for Δ)

damages=k price-FMV (get-give)

7

Defective Performance (measure)

Either COR of DIV

8

Cost of Repair (COR) (def)

Cost to fix or replace

9

DIV (Diminution in Value) (measure)

Value promised-value recieved

10

Special Damages (def)

All losses other than general. (Incid. and Consequential)

11

Reliance Damages (def)

Expenditures made while preparing to perform or performing.

12

Reliance Damages (limitations)

Sometimes not recovered because fully recovered under general. **Puts in pre-contract position.

13

Consequential Damages (def)

Indirect losses (Ex. loss of profits, personal injury, property damage)

14

Costs and Losses Avoided (def)

Often a breach saves the non-breaching party money.

15

Damages (Limitations)

Avoidability, Foreseeability, Certainty

16

Avoidability (def)

No damages if could have been reasonably avoided. Mitigation of damages

17

Foreseeability (def)

Only liable when could/should have predicted when contract was made.

18

Certainty (def)

Must be established with reasonable certainty. Proove: that there was damage (perponderance) and amount with hard data.

19

Reliance Damage (Types)

Incidental, conseq.

20

Incid. Damages (def)

includes cost of preparing to perform or performing.

21

Conseq. Damages (def)

All other costs made in reliance. Not required but reasonable.

22

Assessing damages

1. What type of breach occurred?
2. What damages is the pl entitled to?
3. What are the limitations on the damages?

23

Damages (types)

No damages, Expectation damages, Reliance, Restitution (incid), Special (Consequential) damages, Minus expenses paid

24

Expectation damages (types)

Benefit of the bargain, Compensation for flawed performance

25

Reliance (types)

Performing or prepping, Anticipating performance You get them when you cant get expectation or when no k (estoppel)

26

Restitution (types)

Restoring to prior state

27

Special (Consequential) damages (types)

Lost profits, value, prop/personal damages

28

UCC buyers remedies (formula)

Get back payment + choice of (cover- k) or market + incid. And conseq. (if attempted to cover) Damages – expenses saved

29

UCC sellers remedies (formula)

(K price- resale (or FMV) price) + incid. damages (sellers don’t get conseq) – expenses saved

30

Only use DIV when

Econ waste
Clearly disproportionate
Repair is impossible

31

Lost volume seller (elements)

1. Person who bought resold good would have been solicited by pl absent breach.
2. Solicitation would have been successful
3. Pl could have performed both contracts.