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11 Cards in this Set

  • Front
  • Back
When may expectation damages be recovered?
When they can be proved with reasonable certainty
Expectation damages
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
Limitations on expectation damages
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!
Uncertainty in general
Lost profits are especially hard to deal with! Chicago Coliseum Club v. Dempsey. Damages would be purely speculative!
Mitigation rule
Defendants breached the contract, but after plaintiff received notice of the breach, it shouldn't have increased the damages. Affirmative defense!
UCC exception to mitigation rule
UCC 2-704 : Manufacturer is allowed to continue manufacturing goods after a breach!
Rule of Parker v. 20th Century Fox
Before projected opportunities from other employment can be applied in mitigaion, employer must show that employment was comparable/substantially similar
Two interpretations of stipulated damages clauses
Liquidated damages (enforceable!) or penalty clause (not enforceable!). RS 365 mentions public policy concerns
Whether it's a penalty test
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?
When you get specific performance under the UCC
2-716 - Where the goods are unique or in other proper circumstances (lots of discretion). Aka, Sedmak, where the goods weren't QUITE unique.
Why courts don't like to demand specific performance in personal services contracts
-Difficulty of supervision
-Cost to judicial system