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25 Cards in this Set

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Define expectancy damages. What is an example of an expectancy damage?
Puts P in the position he would have been in had K been performed. Gives P "benefit of the bargain" including profits from K.
Define reliance damages. What is an example of a reliance damage?
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.
Define restitution damages.
Benefit conferred on breacher-prevents unjust enrichment
Are remedial K damages punitive?
No.
Are expectancy damages awarded in quasi-Ks? Why or why not?
No. True bargain is lacking.
Are reliance damages awarded in quasi-Ks? why or why not?
No. Cts would say they are enforcing a K that didnt exist.
When are reliance damages typically awarded?
When profits are impossible or too speculative to determine.
Does J. Holmes consider breach of K a moral issue? Does he suggest a subjective or objective test?
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.
Explain Posner's Economic Theory/Efficient Breach Theory.
K law should be determined by wealth maximization.
Explain the moral school's view of Ks.
Advocates punitive damages, considers breach a lie.
What type of K was Hawkins v McGee? What type of damages were awarded? How were they calculated?
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
Name some fungible goods cases in which expectancy damages were awarded. How are the damages typically calculated in these cases?
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.
Must expectancy damages be reasonably certain? What authority gives us the answer?
Yes, according to the Restatement 2d, sec 352.
What happens if expectancy damages are not reasonably certain?
Reliance damages are awarded.
In regard to expectancy damages, when are cost of completion damages awarded? What case is prime example of this?
When the economic value of complete performance is less than the cost of remedying defective performance. Groves v Wunder.
Are cost of completion damages awarded in construction Ks?
As long as the remedy is not economic waste (i.e. tearing down a building to fix the windows).
Can bad faith or willful breach result in cost of completion damages? What case is an example of this?
Yes. Groves v Wunder, however COC price was only 1/3 of the K price.
What should you do if the cost of completion remedy would result in economic waste?
Use the diminution in value/difference in value formula.
When would you use diminution in value/difference in value calculation for expectancy damages? What case is a prime example of this?
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
Explain Peevyhouse v Garland Coal as it relates to the diminution in value calculation of expectancy damages.
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.
When can expectancy damages be awarded for profits from a new business? Do cts like doing this? What case is an example of this?
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).
Can expectancy damages be recovered for emotional distress? Why/Why not? What case deals with this? What other authority?
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
What is the exception to the emotional distress rule re: expectancy damages? What are some examples?
They can be awarded in emotional distress cases if the K has "elements of personality". Ex: marriage, failure to deliver C-section
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?
No--must be reasonably certain. Chicago Club v Dempsey says boxing match too speculative
Which UCC statutes tell us that expectancy damages must be reasonably certain?
2-715, 1-106