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11 Cards in this Set
- Front
- Back
When may expectation damages be recovered?
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When they can be proved with reasonable certainty
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Expectation damages
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Hawkins v. McGee - the difference between what he would have received had the contract been performed and the position he was left in after the defendant's breach
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Limitations on expectation damages
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Foreseeability - Haxley v. Baxendale - expectation damages, in order to be recoverable, must be foreseeable at the TIME contract was made! Also, RS 351. Uncertainty - 352 : Damages are not recoverable for loss beyond an amount that the evidence permits to be established with reasonable certainty!
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Uncertainty in general
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Lost profits are especially hard to deal with! Chicago Coliseum Club v. Dempsey. Damages would be purely speculative!
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Mitigation rule
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Defendants breached the contract, but after plaintiff received notice of the breach, it shouldn't have increased the damages. Affirmative defense!
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UCC exception to mitigation rule
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UCC 2-704 : Manufacturer is allowed to continue manufacturing goods after a breach!
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Rule of Parker v. 20th Century Fox
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Before projected opportunities from other employment can be applied in mitigaion, employer must show that employment was comparable/substantially similar
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Two interpretations of stipulated damages clauses
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Liquidated damages (enforceable!) or penalty clause (not enforceable!). RS 365 mentions public policy concerns
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Whether it's a penalty test
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Whether the clause is reasonable under the totality of the circumstances - RS 356. Did the parties intend to provide for damages or a penalty? Is the injury caused by the breach an injury that is difficult or incapable of accurate estimation? Are the stipulated damages a reasonable forecast of the harm?
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When you get specific performance under the UCC
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2-716 - Where the goods are unique or in other proper circumstances (lots of discretion). Aka, Sedmak, where the goods weren't QUITE unique.
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Why courts don't like to demand specific performance in personal services contracts
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-Difficulty of supervision
-Cost to judicial system |