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Flashcards in Contract Damages Deck (14):
1

Damages where Contract is Sought to be Affirmed

Legal:
1. Proven damages (Benefit of Bargain)
2. Liquidated damages
Equitable:
1. Specific Performance

2

Specific Performance of a contract when:

1. Inadequate remedy at law (no money damages)
2. Contract is definite
3. Conditions precedent met (P performed his part)
4. Balancing
5. Enforcement is feasible
6. Mutual enforceability (not in ever JX)

IDCBEM
Inadequate remedy
Definite contract
Conditions precedent
Balance
Enforcement possible
Mutual enforceability

3

Types of Plaintiff interests

1. Expectation interest (Benefit of Bargain)
2. Reliance interest (Change in positions)
3. Restitution (unjust enrichment)

4

Damages for Fraud

1. Contract theory (Value represented minus value received)
2. Tort theory (Value paid minus value received)

5

Rescission of a contract when:

1. Mutual consent
2. Fraud
3. Mutual mistake
4. Unilateral mistake of fact (by P, known to D who takes advantage of mistake)
5. Failure of consideration
6. Duress, menace, undue influence, impossibility

MMFUCD
Mutual agreement
Mutual mistake
Fraud
Unilateral mistake
Consideration fail
Duress

6

Reformation of a contract when:

1. Valid prior agreement (something to reform to)
2. Problem with integration of prior agreement into current contract (e.g. mutual mistake of facts, mutual mistakes of law, or unilateral mistake where inequitable conduct)

7

Damages in a contract for sale of good where seller breaches:

1. General Damages
a. FMV minus K price plus return of what is paid OR
b. Cost of cover minus K price plus return of what is paid
2. Special Damages
a. Incidental (costs associated with the breach like cost to find cover)
b. Consequential (costs within contemplation of parties like not being able to make 3rd party contract obligations)

8

Damages in a contract for sale of goods where buyer breaches:

1. General Damages
a. K price minus FMV at time of breach
b. K price minus the resale value
2. Special damages
a. Incidental (costs associated with the breach like cost to stop delivery)
b. Consequential (not likely the case)

9

Damages in a contract for the sale of real property where the seller doesn't convey the property:

Benefit of the Bargain = FMV on breach minus the contract price, plus special damages (like mortgage broker fees)
OR
Reliance interest = Return of deposit
OR
Specific performance

10

Damages in a contract for the sale of real property where the buyer doesn't convey the money for the property:

Benefit of the Bargain = Contract Price minus Fair Market Value on breach + specials

11

Damages in a contract for personal services where the performer abandons the job:

Cost to complete minus remainder of the contract price

12

Damages in a contract for personal services where the performer inadequately performs (e.g. builds a defective house)

Cost to repair
OR
FMV if good minus FMV as it is

13

Damages in a contract for personal services where the buyer breaches:

Benefit of the bargain: contract price minus cost to complete (cost saved)

14

Specific performance in a contract for personal services:

1. generally NO because of 13th amendment
2. but may order
a. reinstatement pursuant to a statute
b. negative injunction such as a non-compete