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25 Cards in this Set
- Front
- Back
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Define expectancy damages. What is an example of an expectancy damage?
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Puts P in the position he would have been in had K been performed. Gives P "benefit of the bargain" including profits from K.
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Define reliance damages. What is an example of a reliance damage?
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Puts P in as good a position as he would have been had there been no K. Award P out-of-pocket expenses incurred in the performance he has rendered.
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Define restitution damages.
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Benefit conferred on breacher-prevents unjust enrichment
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Are remedial K damages punitive?
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No.
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Are expectancy damages awarded in quasi-Ks? Why or why not?
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No. True bargain is lacking.
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Are reliance damages awarded in quasi-Ks? why or why not?
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No. Cts would say they are enforcing a K that didnt exist.
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When are reliance damages typically awarded?
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When profits are impossible or too speculative to determine.
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Does J. Holmes consider breach of K a moral issue? Does he suggest a subjective or objective test?
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No. J. Holmes offers an objective test and suggests that there is no duty to keep K, as long as breacher is prepared to pay damages from breach.
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Explain Posner's Economic Theory/Efficient Breach Theory.
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K law should be determined by wealth maximization.
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Explain the moral school's view of Ks.
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Advocates punitive damages, considers breach a lie.
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What type of K was Hawkins v McGee? What type of damages were awarded? How were they calculated?
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Dr./Patient K. Expectancy damages were calculated by the value of the promised hand less the value of the hand, plus anticipated pain and suffereing, less unpaid MD fees
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Name some fungible goods cases in which expectancy damages were awarded. How are the damages typically calculated in these cases?
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Acme Mills v Johnson, Illinois Central RR v Crail, Watt v Nevada RR. Damages typically calculated by market price at the date and place of delivery less the K price.
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Must expectancy damages be reasonably certain? What authority gives us the answer?
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Yes, according to the Restatement 2d, sec 352.
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What happens if expectancy damages are not reasonably certain?
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Reliance damages are awarded.
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In regard to expectancy damages, when are cost of completion damages awarded? What case is prime example of this?
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When the economic value of complete performance is less than the cost of remedying defective performance. Groves v Wunder.
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Are cost of completion damages awarded in construction Ks?
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As long as the remedy is not economic waste (i.e. tearing down a building to fix the windows).
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Can bad faith or willful breach result in cost of completion damages? What case is an example of this?
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Yes. Groves v Wunder, however COC price was only 1/3 of the K price.
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What should you do if the cost of completion remedy would result in economic waste?
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Use the diminution in value/difference in value formula.
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When would you use diminution in value/difference in value calculation for expectancy damages? What case is a prime example of this?
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Construction Ks. When the cost of completion would result in economic waste, or the cost of remedying the defect is clearly disproportionate to the K price. Ex: Peevyhouse v Garland Coal
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Explain Peevyhouse v Garland Coal as it relates to the diminution in value calculation of expectancy damages.
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The farm was only worth $300 less because of stripmining. The cost of the remedy was $29K. The cts will not generally allow damages for a breach to exceed the gain from full performance.
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When can expectancy damages be awarded for profits from a new business? Do cts like doing this? What case is an example of this?
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Only if P can show he ran a previous operation similar in nature, or if he can introduce expert witnesses. Cts are reluctant to award expectancy damages on this basis. Ex: Fera v Village Plaza (D had previously run a liquor store).
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Can expectancy damages be recovered for emotional distress? Why/Why not? What case deals with this? What other authority?
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No, damages must be reasonably certain. See Valentine v Gen. Amer. CU--mental distress damages resulting from an employment K might be anticipatory, they are too uncertain. Restatement 2d 351, 352 also deal with this subject. UCC 2-715
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What is the exception to the emotional distress rule re: expectancy damages? What are some examples?
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They can be awarded in emotional distress cases if the K has "elements of personality". Ex: marriage, failure to deliver C-section
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Can we expect expectancy damages to be awarded when the profits of a K depend on public whim? What case was an example of this?
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No--must be reasonably certain. Chicago Club v Dempsey says boxing match too speculative
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Which UCC statutes tell us that expectancy damages must be reasonably certain?
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2-715, 1-106
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