Remedies Flashcards
Damages must be considered first followed by ________.
Restitution
Compensatory damages aim to give each party __________.
The benefit of her bargain
Recovery for compensatory damages is the amount necessary to ___________.
Put the party in the place she would have been in had the contract been performed
The measure of compensatory damages is __________ - __________.
Market price - contract price
What are the requirements of compensatory damages?
- Contract breach caused damages
- Damages were foreseeable at formation
- Damages must be established with certainty
- P had duty to mitigate
Mitigation expenses can be recovered even if __________.
Those particular expenses are not connected to a successful mitigation attempt
What are consequential damages?
Related damages foreseeable at contract formation
What are the elements of consequential damages?
- Naturally arose from breach AND
- Reasonable foreseeable
P is only entitled to nominal damages when __________.
There is a breach but no actual proof of damages
Punitive damages are not available for breach of contract unless __________.
P characterizes D’s conduct as a tort as well as a breach of contract
What is a liquidated damages clause?
Damages for breach are specified directly in the contract
What are the two requirements for a valid liquidated damages clause?
- Actual damages difficult to estimate AND
- Figure is a reasonable forecast of fair compensation
Liquidated damages are invalid if interpreted as _______.
A penalty
If a liquidated damages clause is interpreted as a penalty, then:
- It will be invalidated AND
- Actual damages will be awarded
A liquidated damages clause that gives an option of either _____ or _____ is invalid.
Actual damages
Liquidated damages
Under contract law, quasi-contract is used to prevent _________.
Unjust enrichment of D
What must P and D do before quasi-contract arises?
- P has rendered performance AND
- D breaches
When a contract is unenforceable, P can recover _________.
The value of the benefit conferred to D
P may recover the value of the benefit conferred even if its value is higher than _________.
The rate stipulated in the contract
Under quasi-contract may recover specific property conferred to D only if:
- Property is unique OR
- D was insolvent
If there is a material breach, the nonbreaching party can recover ____________.
The value of the benefit conferred to D even if the value is greater than the contract rule
Unjust enrichment cannot exceed the contract price when:
- All the work giving rise to the claim has been completed AND
- The only remaining obligation is the payment of the contract price
If there is a material breach, under quasi-contract, P may recover specific property conferred to D only if:
- Property is unique OR
- D insolvent
Under modern law, may a materially breaching party recover?
Only the value of the benefit conferred to the nonbreaching party; reduces by damages