Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

22 Cards in this Set

  • Front
  • Back
What are the categories of remedies for breach of K?
1. Non-monetary
2. Monetary
What are the non-monetary remedies?
1. Specific performance
2. Right to request adequate assurance of future performance (A2)
3. Unpaid Seller's right of reclamation (A2)
4. Entrustment (A2)
What is specific performance?
Compelling a party to do what he agreed to do for UNIQUE things: real property, art or antiques, custom-made goods, OR if B cannot cover.
Adequate Assurance
1. B has good reason to feel insecure, so can request adequate assurance in writing
2. If S can't provide that, B can treat is as an anticipatory repudiation... but S can retract if B hasn't relied on lack of adequate assurance.
Does adequate assurance include rewriting conditions of K to assure performance
Unpaid Seller's right of Reclamation (A2). The general rule and exception?
1. Rule: an unpaid S has no rights under A2 in good it has delivered to B
2. Exception: S has a right to reclaim if B was insolvent when it received the goods & S demands return within 10 days of B's receiving them.
Exception: S has a right to reclaim goods at any time if B misrepresented its solvency to S in writing within 3 months prior to delivery.
Example of Entrustment
If someone takes her watch to be repaired and the jeweler sells the watch to someone else, can she recover the watch from BFP? No, owner's right can only sue jeweler for conversion.
What are the monetary remedies?
1. No punitive damages
2. Liquidated damages
3. Expectation damages
4. Incidental damages
5. Consequential damages
6. Avoidable damages
Why aren't punitives available?
Purpose of K damages is to compensate, not punish.
Test for liquidated damages?
Permissible if damages:
1. Difficult to estimate
2. The provision is a reasonable forecast of probable damages
Expectation damages?
Expectation: sum that leaves an injured party in as good a position as full performance. Usual measure
Expectation under CL?
In as good a position as full performance.
Expectation under A2?
1. B's damages: sellers tend to breach in rising markets, so replacement good will cost a B more. a2 makes up the difference: (Cover-K) or (Market - K).
2. S's damages: Bs tend to breach in falling markets, so seller can't get as much for the goods. A2 makes up shortfall: (K-resale) or (K-market).
Under A2, if B covers in good faith?
B gets (Cover - K price)
Under A2, if B doesn't cover in good faith or doesn't cover at all?
B gets (Mkt price - K price)
If S sells in good faith?
S gets (Market - resale)
If S doesn't resell in good faith or doesn't resell at all?
S gets (Original higher K price - Resale price)
Wrinkle under B's damages?
If B keeps the goods, even if they're not perfect, then B gets difference in value as promised and value as delivered
Wrinkle under S's damages?
Lost volume seller. Picture to used car example. Resale damages of a used car may be $0, but used car lot could've made 2 profits instead of one.
What are incidental damages?
Costs reasonably incurred in arranging a replacement deal (advertising, phone calls) or costs reasonably expended in the care and custody of goods with respect to which a breach has occurred (storage, insurance)
Consequential damages?
Special damages that are reasonably foreseeable by the breaching party at the time of the K.
Avoidable damages?
Principle of Mitigation.
Such as same kind of job in the same city. "Comparable."