Exam 15: Remedies for Breach

Ralph ordered the installation of a satellite dish from PrimeStar Ltd. for $595. The required minimum deposit was $95, however Ralph paid $200. When Ralph cancelled the order, PrimeStar refused to return the $200 calling it liquidating damages. Actual loss for a cancelled order is estimated by the plaintiff's attorney to be $75. The expected profits on this sale was $60. How much will Ralph end up paying for this cancelled order?

Construction of the shopping centre was to be completed by October 15th (late penalties were included in the contract) and tenants like FabricLand would move in by November 1st. However, the contractor for the shopping center was 43 days late in completing and now FabricLand is suing the shopping centre owner for _ damages, and the shopping center owner is suing the contractor for damages.

Prompt Delivery Ltd. operates a delivery service between Toronto and Hamilton. On November 28th, Wellfield Oil Corp. contracted with Prompt Delivery to deliver a package from Wellfield's Toronto Office to its Hamilton Office. Dan Dickson is a driver for Prompt Delivery. He picked up the parcel from Wellfield's Toronto Office at 2:30 PM on November 28th-having had no clue as to its importance. a. Using the Prompt Delivery van, Dan stopped at the local pub prior to leaving for Hamilton. He got into a fight with a patron and caused extensive damage to the furnishings. Can the pub owner sue Prompt Delivery? Can the patron sue Prompt Delivery? b. Suppose Dan took three days to deliver the parcel instead of the normal one day, and as a result of not receiving the package in one day Wellfield had to shutdown its operation for two days, losing $2,500 per day. Who could Wellfield sue for their losses and what if anything could they recover?

What is the purpose of an award of nominal damages?

B.C. Metal Works agreed to purchase steel rod from Vancouver Smelters Ltd. Delivery was to take place on April 1st. On March 24th, Vancouver Smelters advised Metal Works that the steel rod could not be delivered because of production problems. Metal Works accepted the anticipatory breach of Vancouver Smelters and reserved their right to sue for damages. On April 1st, Metal Works commenced looking for an alternate supply of steel rod and located a supply in Seattle, Washington. The rods could not be delivered for seven days causing Metal Works to shutdown their operations for three days. Metal Works sued Vancouver Smelter for breach of contract. What legal obligation did Metal Works have and what remedy would they be entitled to?

The Lockheart Community has a restrictive covenant which does not allow more than a four- foot solid fence within 15 feet of any public walkway. Ignoring the covenant, Mr. Bailey starts to build a six- foot rock wall along his front sidewalk. Mr. Bailey might be subject to

In an action to enforce a covenant in restraint of trade in an employment contract, the court may grant an injunction.

Houser Inc. (steel fabricators) agreed under contract to supply the steel for a new apartment complex for $47,000. However, when it came time to deliver, Houser insisted on an additional $4000, claiming the suppliers of steel had unexpectedly raised their prices. Disgusted with the turn of events, the contractor of the apartment complex purchased what he needed from another steel fabricator for $53,000 and commenced with a suit for damages against Houser Inc. What are the expectation damages the court will award?

In a case where a party to an agreement of previously determined penalties suffers due to a breach of contract,

How can the judgment creditor extract money from the judgment debtor?

Are there any limitations placed on the damages that can be awarded for breach of contract under common law?

Carlos, an antique dealer, contracted to buy an antique dining room set at a garage sale for $700. He made a down payment and agreed to return on the weekend to pick it up. Then Carlos contacted a former customer whom he knew wanted such an item. This customer agreed to pay $850 for the set. However, when Carlos returned, on the weekend (to where the garage sale had been) he found the dining room set had been sold to someone else (for $900) and had already been hauled away. Carlos was given back his down payment check. Does Carlos have any other claim to damages?

General damages are

Chin Chang agreed to buy an antique dresser from Pedro for $2,500. He made a down payment of $750 and agreed to return and pick the item up at a later date. However, when he returned, Pedro refused to give him the furniture saying that he had found a buyer who would pay a higher price. Chin Chang may be entitled to which of the following equitable remedies:

Damages in contract are intended to punish the party that is liable for the breach.

A liquidated damages clause is the same as a penalty clause.

All of the following may bar someone from obtaining an equitable remedy EXCEPT

Should you win a money judgment in the Court, how would you collect the money?

Mitigation in contract law is best described as

Troy Feldmon agreed to purchase a house from Jenny King for $60,000. Jenny King had previously agreed to sell the house to another individual but that transaction had not been completed due to the purchaser's default. Jenny was very concerned that steps be taken to ensure Troy was serious about completing the purchase so she demanded a deposit of $20,000 and that the contract state "in the event that the purchaser does not complete the transaction the entire deposit would be forfeited as liquidated damages". As it so happened, Troy was unable to complete the purchase due to an unexpected financial setback. Jenny King then declared the deposit forfeited. Will Troy be able to recover all or part of his deposit?