Remedies

Question 1

What are the five kinds of money damages?

Answer 1

1) Expectation Damages
2) Reliance Damages
3) Restitution Damages
4) Liquidated Damages
5) Punitive Damages

Question 2

What are expectation damages? How are they calculated?

Answer 2

Expectation damages is the primary measure of contract damages. They are intended to put the breached against party in the same position they would have been in if the contract had been performed. They must be plead with reasonable certainty, and are calculated by deducting the value of the performance at breach from the value of the performance without breach.

Question 3

Distinguish general vs. consequential measures of expectation damages:

Answer 3

General damages are the type of damage that any party would suffer from breach, and include the cost of storing rejected goods, and finding a new buyer…etc. Consequential damages are losses that are unique or special to a particular plaintiff, and are unrecoverable unless the breaching party had some reason to know of them.

Question 4

What are the requirements for a court to enforce a liquidated damages provision?

Answer 4

Courts will award liquidated damages only if:

1) The amount was reasonable at the time of contracting
2) Actual damages from breach would be uncertain in amount and difficult to prove

Question 5

Are punitive damages available?

Answer 5

Almost never. Unless the breach also seems like a tort.