Exam 18: Contract Remedies

Explain three limitations on monetary damages.

At its discretion, a court may grant the equitable remedy of injunction against breach of a contractual duty where damages would be inadequate.

An action to recover damages for breach of contract may be maintained only if the plaintiff has sustained or can prove an injury or loss resulting from the breach.

UCC "Election of Remedies" rules would require the aggrieved party to choose one remedy he wants to pursue and forego the others.

Equitable remedies result in money awards to the plaintiff.

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

A liquidated damage is a provision by which the parties agree in advance to the damages to be paid in the event of breach.

Bartow signed a contract to coach baseball for Washington High for a period of three years.After two years he is offered and accepts an assistant coach position at State University.Contract law will not allow Washington High to ask for:

Busby contracts to build a house for Connell.Busby finishes approximately half of the house and quits.Connell files suit against Busby.Which remedy is not available to her?

Garrett ordered 100 pieces of 2 × 6 lumber from his supplier and paid upon delivery.Later, when he unpacked the lumber, he discovered that the supplier had delivered 2 × 4 lumber.After being notified, the supplier picked up the lumber, apologized, and gave Garrett his money back.The response the supplier made to rectify the breach is:

The purpose of reliance damages is to place the injured party in a position as good as he would have held had there been no contract.

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

If Jana, a minor, transfers property to Scott and Scott sells the property to a good faith purchaser for value before Jana avoids the transfer:

Explain consequential damages.Give an example.

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

A small damage amount fixed without regard to the amount of loss is known as:

Restitution is available when:

Liquidated damages are an equitable remedy.

Harry said to Marge, "I have a ring once owned by Marilyn Monroe.Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local department store.Marge enjoys wearing the ring and wears it constantly for twelve months.Finally, she goes to Harry and says, "Here is the ring you lied about.Give me my $500." Most likely Marge will:

Courts will usually uphold a liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine.