Contract Remedies

polukupi's version from 2017-01-28 21:45

Section 1

Question Answer
Punitive DamagesNot generally recoverable or a BOK
Liquidated DamagesK can stipulate damages or method of fixing damages
Damages for Ordinary KsParty Entitlted to recover amount that puts him is as good a position as if the contract had been performed
Damages for Sale of Goods UCC2See Sec. 3
Quasi K and RelianceSee Sec. 4
Non-monetary RemediesOnly when remedy at law is inadequate; See Sec. 5

Section 2

Question Answer
When are liquidated damages clause valid?At time of contract, 1. the amount of damages for a breach are difficult to determine, 2. The contract provision is a reasonable forecast of possible damages
Additions to DamagesPlus: 1. Foreseeable consequential damages 2. costs incurred dealing with the breach
Deductions from damagesMinus: Avoidable damages if the appropriate steps had been taken to do so

Section 3

Question Answer
Seller breaches + Buyer keeps goodsBuyer gets fair market value if perfect, or fair market value as delivered
Seller breaches + Seller keepsBuyer gets market price at time of discovery of the breach / OR replacement price
Buyer breaches + Buyer keeps goodsSeller can get K price
Buyer breaches + Seller keepsSeller gets K price/market price at time and place of delivery OR K price/resale price

Section 4

Question Answer
Unjust enrichmentA party should pay for the benefit and vlaue of service and materials received. A promised gift does not count UNLESS injustice can be avoided only by enforcement
ReliancePuts the injured party in the same dollar position as if the K never happened

Section 5

Question Answer
Specific Performance or InjunctionApplies to K for sale of real estate, unique goods, services
Adequate Assurance of Future PerformanceParty to K learns something giving him reasonable grounds for insecurity about the other party's performance, may demand written assurance
ReclamationRight of an unpaid seller to get goods back. Buyer must be insolvent at ttime goods were received, seller must demand return of goods within 10 days of buyer's receipt, and buyer still has goods at time of demand
Stopping goods in transit or recovering from storageIf buyer is insolvent
Rights of good faith purchaser in entrustmentIf owner leaves goods with person who sells goods of that kind,that person wrongfully sells to 3rd party, original owner/entruster has no righs

Section 6