Flashcards in Chapter 6-Damages Deck (31):
Damages, restitution, agreed damages, coercive equitable remedies.
To put π in position they would have been if the contract had not been breached. (post-performance position)
Look to measure of and limitations on damages.
General Damages (Types)
Award of loss of value, cost of what π was promised, or profit expected.
Non-Performance (measure for π)
damages=FMV-k price (get-give)
Non-Performance (measure for Δ)
damages=k price-FMV (get-give)
Defective Performance (measure)
Either COR of DIV
Cost of Repair (COR) (def)
Cost to fix or replace
DIV (Diminution in Value) (measure)
Value promised-value recieved
Special Damages (def)
All losses other than general. (Incid. and Consequential)
Reliance Damages (def)
Expenditures made while preparing to perform or performing.
Reliance Damages (limitations)
Sometimes not recovered because fully recovered under general. **Puts in pre-contract position.
Consequential Damages (def)
Indirect losses (Ex. loss of profits, personal injury, property damage)
Costs and Losses Avoided (def)
Often a breach saves the non-breaching party money.
Avoidability, Foreseeability, Certainty
No damages if could have been reasonably avoided. Mitigation of damages
Only liable when could/should have predicted when contract was made.
Must be established with reasonable certainty. Proove: that there was damage (perponderance) and amount with hard data.
Reliance Damage (Types)
Incid. Damages (def)
includes cost of preparing to perform or performing.
Conseq. Damages (def)
All other costs made in reliance. Not required but reasonable.
1. What type of breach occurred?
2. What damages is the pl entitled to?
3. What are the limitations on the damages?
No damages, Expectation damages, Reliance, Restitution (incid), Special (Consequential) damages, Minus expenses paid
Expectation damages (types)
Benefit of the bargain, Compensation for flawed performance
Performing or prepping, Anticipating performance You get them when you cant get expectation or when no k (estoppel)
Restoring to prior state
Special (Consequential) damages (types)
Lost profits, value, prop/personal damages
UCC buyers remedies (formula)
Get back payment + choice of (cover- k) or market + incid. And conseq. (if attempted to cover) Damages – expenses saved
UCC sellers remedies (formula)
(K price- resale (or FMV) price) + incid. damages (sellers don’t get conseq) – expenses saved
Only use DIV when
Repair is impossible