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Flashcards in General Damages for Breach of Contract→ Reliance Measure Deck (4)
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1
Q

Reliance Measure

A

Reliance Measure: Puts the non-breaching party in the position they would have been in had the promise/contract never been made.

  • The non-breaching party is entitled to damages for the expenses incurred in the performance of or in preparation of the performance of the contract
    • unless the breaching party can prove they were operating at a loss, then they will not be able to retrieve those damages.
2
Q

Reliance Measure

The non-breaching party is entitled to damages for _____________.

A

The non-breaching party is entitled to damages for:

  • the expenses incurred in the performance of OR
  • in preparation of the performance of the contract
3
Q

Reliance Measure

Typically Used when _________.

A
  1. Expectancy measure is not adequate due to lack of certainty
  2. Where non-breaching party made a losing contract
  • no profit going to be made, so expectancy would not be good
  • not going to save you from losing contract –> subtracts your loss from the cost
  • Breaching party has burden of proof for loss
4
Q

Reliance Measure

Pre-Contract Expenses

A

Pre-contract expenses are not typically awarded

  • unless the breaching party can prove they were operating at a loss, then they will not be able to retrieve those damages.
  • English Rule: Pre-contract expenses can be awarded if breaching party had reason to know that expenses would be likely to be wasted if the contract was broken