Exam 18: Contract Remedies

Contract damages that put the injured party in as good a position as if the other party had performed are:

An injured party may seek reimbursement for foreseeable loss caused by her reliance on the contract.

A power of avoidance held by a party may be lost if:

Restitution is available when:

When an injured party is required to elect remedies,which of the following would be mutually exclusive?

In relation to damages,the test of foreseeability is subjective.

Even if a party has the power to avoid a contract for lack of capacity,duress,or undue influence,the party will lose that power by affirming the contract.

Lost profits can never be recovered as damages since they are speculative and cannot be established with reasonable certainty.

Explain consequential damages.Give an example.

Most states allow a party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value received and the value given.

Define incidental damages and give an example.

Consequential damages include lost profits and injury to person or property resulting from defective performance.

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500.When Carolyn discovers that her cousin wants it too,she breaks the contract with Marianne.Marianne can ask the court to order:

What interests of an injured party are protected by contract remedies?

Linnea contracts to buy Harriette's farm for $300,000 and puts $20,000 down.Then Linnea learns she is allergic to hay and repudiates the contract.If Harriette can sell the farm one month later for $290,000,she may:

To fully compensate plaintiffs in breach of contract cases,courts always award punitive damages commensurate with the losses the plaintiffs have suffered.

Bob's brother,Steve,planned to visit over Labor Day weekend.Together they planned to build a deck in Bob's backyard.Bob ordered the lumber,concrete,nails,and other supplies to be delivered on Friday.He also contracted to rent a saw for the weekend (Sat. ,Sun. ,and Mon. )at a cost of $20 a day.When he went to pick up the saw,the store had rented it to someone else.He drove all over town trying to borrow another,but he could only get one for Sunday,Monday,and Tuesday at a cost of $50 per day.Because they couldn't work on Saturday without a saw,Bob had to hire Mac at a cost of $80 to work with him on Tuesday and,of course,Bob had to take off from work.Calculate the damages to which Bob is entitled from the rental company.Explain.

If Marc signs an employment contract for one year but is fired without cause after two months and spends $500 in reasonable fees trying to find a comparable job,he may recover $500 in incidental damages.

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David.David subsequently offers the land to Fred without first offering it to Edward.An appropriate remedy for Edward to seek would be:

Miller made a contract to sell his condominium to Jefferson for $80,000.Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000.Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000.Jefferson is seeking: