Exam 12: Breach of Contract and Remedies

Consequential damages are awarded for damage caused by special circumstances beyond a contract itself.

Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.

Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek

Consequential damages are foreseeable damages that arise from a party's breach of a contract.

Courts order reformation most often when fraud or mutual mistake is present.

The injury suffered by a nonbreaching party due to the breach of a contract may be remedied by payment of coincidental damages.

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

When a waiver of a breach of contract occurs, the party waiving the breach cannot take any later action on it.

Forest Lumber Company orally contracts with Gail for the purchase of five acres of Gail's timberland. Gail makes the transfer but Forest Lumber does not pay the price. Gail could most likely recover on a theory of

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot

Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches the contract, Scrub n' Dry can

Bread & Bagels Bakery (B&B) enters into a contract with CinePass for discounted movie tickets for B&B's employees. CinePass breaches the contract and B&B enters into a contract with Dine+View for the same service at a lower price. B&B might be awarded nominal damages to

Under the doctrine of mitigation of damages, the duty owed depends on the nature of the contract.

Sara contracts to work exclusively for Thermal Company during July for $5,000. On June 30, Thermal cancels the contract. Sara finds a similar job for the month of July but earns only $3,000. Sara files a suit against Thermal. As compensatory damages, Sara can recover

Fact Pattern 12-1 Andre enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. -Refer to Fact Pattern 12-1. If Belle Vista breaches the contract, Andre's remedy would most likely be

Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.

Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance else-where for $3,500. Oxley's measure of damages is