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Flashcards in Remedies Deck (13)
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1
Q

Expectation Damages

A

Standard measure of money damages

  • Puts the parties in the same economic position as if the contract has been performed
  • When in dount, look for the answer that most closely gives the non-breaching party the money she would have received absent the breach
2
Q

Reliance Damages

A

Alternative measure of damages used when expectation damages are too speculative

  • Designed to compensate P based on the value of her perfromance (i.e. puts the parties in the same economic position as if the contract has never been formed).
  • Applicable when expectation damages are uncertain or too speculative.
3
Q

Duty to Mitigate

A

All parties must mitigate damages

  • A party may not recover for avoidable damages
  • D bears the burden of showing P’s failure to mitigate.
4
Q

Additional Damages

Incidental Damages

A

Commercially reasonable expenses incurred by the non-breaching party in UCC contracts

  • cost of inspecting, returning, storing, reselling
  • Recoverable to both buyers and sellers
5
Q

Additional Damages

Consequential Damages

A

Foreseeable losses indirectly resulting from the breach; recoverable if:

  1. Damages are a foreseeable result of the breach, and
  2. When contract formed, D has reason to know P would suffer special, unpreventable, or unexpected damages in the event of a breach
  • UCC: only buyers can recover
6
Q

Restitution Damages

A

Arise in quasi-K situations

  • Applies if there is no enforceable contract and a party has been unjustly enriched
  • Award based on valuse of the benefit wrongfully conferred
7
Q

Liquidated Damages Definition

A

Agreed-upon contract provisions that stipulate specified damages upon the occurrence of a breach.

8
Q

Liquidated Damages Elements

A
  1. Damages are difficult to project at time of contract formation
  2. The provisions is a reasonable estimate of actual damages.
9
Q

Breach by Seller & Buyer keeps goods

A

Damages = fair market value of perfectly-delivered goods minus FMV of the goods actually delivered,

  • If seller breaches by delivering non-conforming but superior goods, buyer is not responsible (i.e. it does not reduce the buyer’s damages)
10
Q

Breach by Seller & Seller keeps or buyer returns goods

A

Damages = whichever of the following is higher:

  1. FMV of goods at the time of breach minus contract price, or
  2. Buyer’s costs of covering/replacing goods minus contract price
11
Q

Breach by buyer & buyer has goods

A

Damages = Contract Price

12
Q

Breach by Buyer & Seller has goods

A

Damages = either:

  1. COntract price minus market price at the time of delivery, or
  2. Contract price minus resale price plus provable lost profits.
13
Q

Lost Profits

A

A seller can recover the lost profits from a buyer’s breach, even though she resold the item that was the subject of buyer’s breach, if she can prove that she would have made a sale to the second buyer regardless of the furst buyer’s breach