Remedies Flashcards
(20 cards)
Money Damages
The purpose of money damages is to compensate the non-breaching party by placing her in a same position where she would have been if there had been no breach.
Expectation damages
In most cases, the P’s standard measure of damages will be based on his “expectation” if the breach did not occur (i.e. benefit of bargain damages). This is calculated by determining the value of contract without breach, minus value with breach.
Reliance Damages
If expectation damages are too speculative, the court will award reliance damages. Reliance Damages are awarded to put the plaintiff in the position she would have been had the contract never been formed.
Consequential damages
Consequential damages are special damages incurred as a result of the breach that can e recovered if the D had reason to know the special damages were foreseeable at the time of the contract. (e.g. lost profits from closing business due to delay)
Incidental damages - Sale of goods
Incidental damages are always available for breach of a sale of goods contract. Incidental damages include expenses reasonable incurred by the buyer to return, replace or resell non-conforming goods.
Liquidated Damages
Liquidated damages are a contract provision fixing damages for a breach. Liquidated damages are enforceable if 1) damages were difficult to forecast at the time of the contract and 2) the amount that a reasonable in view of the actual or anticiapted harm caused by the breach.
Sale of goods contract
Buyer’s damages are the difference between contract price and cost to replace or the market price if not replacement. The buyer is also entitled to consequential and incidental damages, less any costs saved by not having to preform.
Seller’s damages are 1) difference between contract price and resale price 2) difference between contract price and market 3: lost profits is volume seller.
Land sale contract
Damages are the difference between the contract price and fair market value
Employment Contract
Employer breqaching must pay full contrqact price. Employee breaching there is no cost to replace employee.
Construction contract
Breach by owner 1) before construction = builder’s prospective profits 2) during construction = contract price minus the cost of completion 3_ after completion = full contract price plus interest. Breach by builder 1) before or during consstruction = cost of completion plus compensation for delay 2) late completion = value of lost use
Punitive Damages
Punitive or punishment damages are usually not awarded in breach of contract cases.
Nominal Damages
Nominal damages may be awarded when a breach is shown but no actual loss is proven.
Duty to mitigate
The non-breaching party cannot recover avoidable damages. Thus, the non-breaching party must make reasonable efforts to “mitigate” the damages, but may recover the expense of mitigation.
Restitution - Quasi Contract
When the contracl fails, the non-breaching party may recover in quasi-contract up to the “value of the benefit conferred” to prevent unjust enrichment of one of the parties.
Equitable relief - Specific performance
If a legal remedy is inadequate, the non-breaching oarty may seek specific performance, which orders the breaching party to perform. SP is always available for land sale contract or rare or unique goods, but not available for breach of a services contract, even if the services are rare or unique.
Injunction
A court may enjoin a breaching party from working for a competitor throughout the duration of a contract if the services contracted are for rare or unique goods
Rescission
A contract can be voided if there was a mutual mistake of material fact, or a unilateral mistake known by one party, misrepresentation, duress, illegality, etc.
Reformation
A contract can be changed to confirm to the parties’ original intent.
Reclamation
A seller can get goods back from a buyer who hasn’t paid if the seller demands return within 10 days of buyer receiving the goods.
Defenses
An action for equitable relief is subject to defenses of: latches, unclean hands, and sale to a bona fide purchaser.
