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22 Cards in this Set

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Turner v. Brown

What is the G/R and proper measure of damages available to a vendor as against a breaching vendee in a real estate transaction?
The vendor is entitled to the difference between the K price and the fair market value of the property at the time of breach.
What else may the vendor recover?
Special damages, if any, that arise out of the breach of K in order to compensate the vendor for any loss or injury actually sustained by reason of the vendee's breach.
What is a stipulation of these special damages?
They must be w/in the reasonable contemplation of both parties at the time the contract was made.
What damages under the G/R is the P entitled to if at the time of the breach, the actual value of the P's residence equals or exceeds the K price?
Only nominal damages
How are damages for the loss of the bargain calculated if the seller has breached?
The difference between the K price and the market value of the property at the time of breach....but the purchaser must prove that the property's market value was MORE than the K price at the time of breach
When the K price and market value are approx equal, what requirements and limitations are the "consequential" or "incidental" damages subject to?
1) the "rule" of Hadley v. Baxendale - damages are recoverable only if they were reasonably foreseeable at the time of the K
2) the prohibition on speculative damages - damages must be proven with reasonable certainty
3) the duty to mitigate damages - damages may not be recovered to the extent that they could have been avoided or minimized with reasonable efforts.
Is the general formula set forth in REST sect. 347 the only way courts measure expectation damages?
NO. They often used alternative measures.
In proof of market value, is showing that similar homes were "listed" at a certain price sufficient evidence?
No, b/c the "listing" price often overstates value.
What do courts allow in the requirement of proof of market value?
1) expert testimony - appraiser
2) owner of property
3) resale price of property at the time of the breach, provided the resale takes place w/in a reasonable period of time in an arm's length transaction.
What is the "English Rule" in breach by the seller?
this restricts the P purchaser to restitution of any payment made by her on the purchase price, unless she can demonstrate that the D seller has breached in "bad faith."
What is the "American Rule" in breach by the seller?
this generally awarded expectation damages for any unexcused failure to convey, regardless of the good faith or bad faith of the seller.
Which rule is more in line with traditional G/R of K law? Why?
the "American Rule" b/c unless the cause of nonperformance falls within one of the recognized categories of legal excuse, an expectation-based remedy will normally be available.
What is the potentially "attractive feature" of the "English Rule"?
adjusting the remedy for breach in light of the willfulness of the breaching party
What is the UCC damages rule?
Damages for breach of a K to buy or sell goods may also be measured by the differenc btwn the market price and the K price of the goods.
What does UCC SEC 2-708(1) determine seller's damages to be?
the measure of the seller's damages for nonaccpetance or repudiation by buyer is "the difference between the market price at the time and place for tender and the unpaid K price together w/any incidental damages provided in this article (sec2-710), but less expenses saved in consequence of the buyer's breach.
What does UCC SEC 2-713 determine buyer's damages to be?
the measure of the buyer's damages for nondelivery or repudiation by the seller is the "difference between the market price at the time when
the buyer learned of the breach and the K price together with any incidental and consequential damages provided in this Article(sec2-715), but less expenses saved in consequence of the seller's breach.
What does UCC SEC 2-706 provide for?
"seller's resale" - allows the seller who complies with its provisions to recover from a breaching buyer damages measured by the difference btwn the K price and the seller's resale price.
What does UCC SEC 2-712(1) provide for?
"buyer's cover" - allows the buyer to "cover" her loss by purchasing substitute goods and to measure her damages by the difference between the cost of the goods and the K price.
When does "postjudgment interest" begin to accrue under local law?
from its date of entry, perhaps from the date of the verdict with respect to the amount of that judgment
When will "prejudgment interest" be awarded?
in agreements that call for the payment of a sum of money on or before a fixed date or on the happening of a specific event (e.g. a promissory note) commonly provide that this sum will bear interest at some state rate if timely payment is not made. Such a provision will be given effect in the judgment unless it violates some "usury" statute.
Can a P gain "prejudgment interest" in the absence of specific K language?
sometimes, but usually only awarded in cases where at the time of the breach the P's claim was for a "liquidated" sum.
When does a claim become "liquidated"?
when both the amount due and the date on which such amount is due are fixed and certain or when the same become definitely ascertainable by mathematical calculation.