Remedies for unexcused nonperformance: Damages Flashcards Preview

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Flashcards in Remedies for unexcused nonperformance: Damages Deck (19)
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What are the types of damages available?

Expectation, incidental, consequential, avoidable, certainty, reliance, liquidated.


Are punitive damages allowed in a contract case?

hell to the fucking no


What is the general approach to the measure of damages?

Protection of expectation. You look for the dollar value of performance without breach. The dollar value of performance with breach. Compare the two to determine the damages.


What is the damage rule for sales of goods?

Part 7 of Article 2 reflects the general contract damage polciy of putting the innocent party where it would have been had the contract been performed. Three relevant facts: 1) who breached, 2) who has the goods, 3) was there a later replacement deal


UCC Damages for seller's breach and buyer keeps goods?

Fair market value if perfect minus fair market value as delivered (or cost of repair)


S sells B an antique car for $30,000. B pays the $30,000, and S delivers the car.
Although the contract provided that all parts of the car were authentic and
original, some were not. B keeps the car and sues for breach of contract. The
jury finds that at the time and place of B’s acceptance of the car, the car as
delivered was only worth $20,000; the jury also finds that if the car had been
delivered as contracted, it would have been worth $34,000. How much can B

$34K fair market minus $20K=$14K


Seller Breaches, seller still has the goods?

Market price at the time of discovery of the breach minus contract price OR reasonable replacement price minus contract take the greater of the two!


S contracts to sell B carpeting for $5,000. S never delivers the carpeting (or S
delivers the carpeting and B rejects it because it is not a perfect tender). At the
time B learned of the breach, the market price of comparable carpeting is $6,600
but what if B pays $7,000 for comparable replacement carpeting?

Market price at time of discovery of breach=$6600, K price=$5000=$1600

Reasonable replacement price=$7000 K price=$5000, =$2000

Pick greater of the two


What are the damages for buyer's breach, if the buyer keeps the goods?

Contract price


What are the damages for the buyer's breach, if the seller keeps the goods?

Contract price minus resale unless seller cannot resell, in which case the seller can recover the contract price, and in some cases provable lost profits.


What are the measure of damages for a volume seller?

Provable lost profits.


In addition to damages what may be recoverable?

incidental damages and foreseeable consequential damages less damages that are avoidable less uncertain damages.


What are incidental damages?

Costs incurred in dealing with the breach such as costs of storing rejected goods in a sale of goods or finding a replacement in a services contract – always recoverable.


What are consequential damages?

Special damages.


What are consequential damages limited to?

Limited to damages arising from P's special circumstances and recovery of consequential damages is limited to situations in which D had reason to know of these special circumstances at the time of the contract.


M contracts with C carrier to transport goods to
another village for repair for $100. C breaches by nonperformance. M is unable
to find anyone else who will transport the goods for less than $150 and pays T
$150 to transport the goods. M sues C for breach of contract. What is the
measure of M’s damages?

$50 general expectation damages. M expects no breach, consequence was $50 extra.


To recover consequential damages what must be known at the time of the contract?

Defendant must know of plaintiff's special circumstances.


What are avoidable damages?

No recovery for damages that could have been avoided without undue burden on plaintiff. Burdens of pleading and proof on defendant.


What is the test for a valid liquidated damages clause?

There are two: (1) damages were difficult to forecast at the time contract was made and (2) provision is a reasonable forecast.