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29 Cards in this Set

  • Front
  • Back
Reliance Damages
Use if profits are too speculative
Case Description:

L.Albert & Son v. Armstrong Rubber
RELIANCE DAMAGES - Def' were late fulfilling Plf' w/rubber machines. So if fulfilling the contract would result in a loss, so recover = expenses incurred in preparation for performance MINUS expected loss
Case Description:

Sullivan v. O'Conner
RELIANCE DAMAGES - could not determine the value of a "good nose" so recovered: = Dr’s fee + repair + pain & suffering
Case Description:

Chicago Coliseum Club v. Dempsey
RELIANCE DAMAGES - did not award monies for expenditures prior to signing contract (cost of signing another fighter is not recoverable)
Case Description:

Angelia TV v. Reed
RELIANCE DAMAGES - foreseeable that Angelia TV would spend money on production if they were under assumption start would participate, was able to recover pre-K expenditures
Restitution Damages
Benefit to def' has to be proven, recover is $$ of benefit on def', not availabe when contract is fully performed, use market value not K value(K value can be used as evidence of FMV)
Case Description -

Oliver v. Campbell
RESTITUTION DAMAGES - attorney performed his duties as a divorce atty, but wanted 5K for trial work when he agreed to 750 before trial, cannot collect 5K b/c he had already fully performed contract
Case Description -

Boone v. Coe
RESTITUTION DAMAGES - Plf' moved from OK to TX, but no benefit and no enforceable contract (under statute of frauds); Plf' receives nothing
Case Description -

U.S. v. Algernon Blair

US for Coastal Steel Erectors
RESTITUTION DAMAGES - Coastal has the option to forfeit a contract claim and instead claim only the reasonable value of his performance (market value). Blair, who breach the subcontract has retained these benefits w/out fully paying for them. Coastal is allowed restitution in quantum meruit.
Restitution via quantum meruit
The reasonable value of the performance (amount services could have been purchases in similar situation)
Case Description -

Kearns v. Andree
RESTITUTION DAMAGES - Kearns made certain changes to a house Andree requested (and was supposed to buy). He repudiated on purchase, plf' could recover cost of wall papering, etc (ONLY LIBERAL COURTS)
Quasi Contract
Contracts implied in law; contracts where something was definetly not promised, but the law enforces it anyway to disgorg unjust enrichment
Case Description -

Britton v. Turner
RESTITUTION DAMAGES - Laborer was contracted to work for 1 year. Quit after 9.5 mo. Sues for restitution damage. Determine damages by looking at fmv, can use contract price as evidence.
Quasi Contract in Quantum Meruit
Implied contract for work and labor rendered
Quasi Contract in Quantum Valebat
Implied contract for good and services sold
What is recovery on quasi contracts based?
Based on ability to prove unjust enrichment. If K is not enforceable, recovery may be had in quasi K for benefits conferred on other party.
What if there is not attempt to form a contract, can a quasi contract be established?
Yes - in certain situations, such as emergency MD services, plf' can have recovery b/c def' is unjustly enriched.
Case Description:

Farash v. Sykes
Owner/Landlord is suing tenant b/c of tenant’s refusal to occupy a building. B/c tenant required landlord to redo the place, court made him pay.
Case Description:

Thach v Durham
Thach put $3100 down for some sheep. He ended up not buying the sheep and took Durham to court suing for restitution of the down payment. Court denied restitution recovery. Takes morals or willfulness in burden of proof.
Case Description:

Pinches v. Swedish Evangelical Lutheran Church
Pinches does not sue on the contract b/c he breached the contract. He sues on behalf of a quasi contract. He sells for benefit conferred to defs’. He recovers cost of contract – diminution of value of contract (b/c it was less than the cost of completion)
Case Description:

Vines v. Orchard Hills
No recovery if deliberate breach. Plfs’ contracted to purchase a condo from def’. They paid 10% of the price as down payment. Plf' rescinded contract in good faith. Plf' filed action to recover down payment.
Case Description:

De Leon v. Aldrete
Court determined that it would unjustly enrich the seller if he were able to keep the $1070 from the original buyer AND the $1300 from the second buyer.
If Plf' is the breacher in a service contract,
how do you calculate damages for the plf'?
The contract price sets upper limit to recovery (Britton) and Morals or Willfulness enters in burden of proof (Thach)
If Plf' is the breacher in a construction contract,
how do you calculate damages for the plf'?
Subtract the non-breacher's damages from recovery and NO recovery if no substantial performance, no acceptance by owner, or negligence.
If Plf' is the breacher in a land contract,
how do you calculate damages for the plf'?
No recovery if deliberate breach (Vines v. Orchard Hill).
Liquidated Damages - When Court Will Not Enforce
Court will not enforce a clause specifying damages in advance that are so large as to compell performance of the contract (PENALTY)/.
Why Cout will sometime not enforce liquidated damages clause?
Contrary to classical contract theory's efforts to allow economical breaches.
Test for Enforceable Liquidated Damages Clause
Anticipated Damages (City of Rye)
Case Description:

City of Rye
Plf’, City of Rye, sued to recover 100K bond posted by def’ as developers to ensure completion of bldgs by a certain date. 500+ days & the bldgs aren't done. Court says no, anticipated damages are unreasonable.