Contract Remedies

Question 1

Measure of Damages in General Contracts

Answer 1

Right based on expectation interest (benefit of the bargain)

Question 2

Expectation interest (benefit of the bargain)

Answer 2

The loss in value to him of the other party’s performance caused by its failure or deficiency + any other loss (incidental or consequential) caused by the breach - any cost or other loss that he has avoided by not having to perform.

Question 3

Unforeseeability

Answer 3

Damages are not recoverable for a loss that the party did not foresee or have reason to.

Question 4

Hadley

Answer 4

Consequential damages can be claimed by the nonbreaching party only if both parties to the contract were aware of the possibility of such losses arising from the breach.

Question 5

When is Expectation Interest Recovery appropriate?

Answer 5

When a contract has been breached and the nonbreaching party wants to enforce the contract through an action for breach.

Question 6

When party does not want to enforce or is unenforcable ??

Answer 6

There is no recovery based on obligations imposed by contract so restitution may be appropriate.

Question 7

minor deviation ?

Answer 7

Court require nonbreaching party to continue his or her performance and generally limited to contract based remedy

Question 8

Material/Total breach

Answer 8

Nonbreaching party will be relieved and will be given choice of affirming or rescinding.

Question 9

Affirming

Answer 9

Recovery based on expectation interest.

Question 10

Rescinding

Answer 10

Restitution principles. no contract to determine what damages are. measured by value of benefit conferred irrespective of Specific terms.

Question 11

Fraud Based Recoveries

Answer 11

Out of Pocket and Benefit of bargain

Question 12

Out of pocket

Answer 12

restoring P to the financial position enjoyed by him prior to fraud

Question 13

Benefit of bargain

Answer 13

Satisfying expectation interest. Putting him in position he would have enjoyed if the false representation he relied upon had been true.

Question 14

Buyer’s Remedies

Answer 14

May cancel and whether or not he has done so may in addition to recovering so much of the price as has been paid also recover
cover and damages under section 2712
damages for non delivery 2713
recover good as ID
in proper case specific performance or replevy

Question 15

Cover (buyers procurement of substitute good) 2712 (1)

Answer 15

Buyer may cover by making a good faith and w/o reasonable delay any reasonable purchase of or contract to purchase goods in substitution.

Question 16

2712 (2) (cover damges)

Answer 16

Buyer may recover seller as damages the difference the cost of cover and the contract price together with any incidental or consequential damges

Question 17

Damages for nondelivery

Answer 17

Diff b/t market price at the time when buyer learned of breach and the contract price with any incidental or consequential

Question 18

Buyer incidental damages

Answer 18

expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses, or commissions in connection with effecting cover and any other reasonable expense incident

Question 19

Buyer consequential damages

Answer 19

any loss resulting from general or particular requirements and needs of which teh seller at the time of contracting had reason to know and which could not have reasonable be prevented by cover and injury to the person or property proximately resulting ffomr breach

Question 20

SP / Replevin

Answer 20

Where goods. are unique, replevin of goods if after reasonable effort he or she is unable to effect cover for such goods or the circumstances reasonably indiciate that such effort wil be unavailing of if the goods have been shipped

Question 21

Sellers Remedies:

Answer 21

Withold delivery of such goods, stop delivery by any bailee, resell and recover, recover damages for nonacceptance, cancel.

Question 22

Damages for nonacceptance

Answer 22

difference between market price at the time and place for tender and the unpaid contract price together with any incidental damages