Contracts II-Remedies

Contracts II-Remedies - Contracts II Outline Justin Hoffman...

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Contracts II Outline – Justin Hoffman – Professor Kniffin I Remedies A) General pattern for expectation damages : a. Ask whether the aggrieved party has set up a substitute transaction 1. Example: The buyer covers. 2. The market allows for substitute transactions, and we encourage this. b. Sometimes substitute performance doesn’t achieve expectation. 1. Overhead 2. The awarding of lost profits. B) Equitable Remedies – At court’s discretion, even if all the requirements are met. a. Specific Performance – Not the same as damages, but is a form of equitable relief. Up until the 1920’s, the courts in the US were divided between courts of law and courts of equity. b. Clean Hands doctrine c. Requirements for Specific Performance 1. Money damages would not be adequate to achieve expectation. i. Uniqueness – Mona Lisa. BUT not the only way to show that money damages are inadequate. Land is considered unique, and was the basis of wealth in old England. ii. It would be too difficult to measure money damages. a. Eastern Rolling Mill v. Michlovitz – 5yr. Scrap metal contract was breached. Specific performance was granted because expectation would have been impossible to calculate (how much metal would be produced, price would fluctuate b. Walgreen – Posner’s economic analysis – calculations would be costly and inaccurate because a ten year projection would have to be made. v. It would be impossible or very difficult to cover. (If it’s impossible, then you’re back to arguing uniqueness.) a. Klein – Airplane contract. The court says it’s not too difficult to cover. If cover is very expensive, the aggrieved party can just seek money damages. 2. Specific Performance must not require excessive supervision by the court. i. Northern Delaware – impractical specific performance – no way to effect an order to require a specific number of workmen on the site. 3. The contract terms must be clear enough so that the court can write a clear decree of specific performance. i. The court can seize the property or even the person for a violation of a decree. However, imprisonment is rare. 4. Specific Performance must not require antagonistic individuals to associate with each other (usually employment contracts) i. Contracts for personal services will not be specifically enforced. This grows out of a concern for the constitutional prohibition against slavery.
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C) Remedies at Law i. For one, you avoid the clean hands requirement. ii. Equitable remedies are also discretionary, while replevin and remedies at law are not. iii. You can have a jury on that issue, whereas in equitable remedies, you would not have that advantage. b. Buyer’s Remedies 1. Replevin - 2-716(3) –Buyer need not prove uniqueness, but needs to show that the particular type of item he is trying to obtain is the same exact item that was contracted for. i.
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This note was uploaded on 02/15/2008 for the course LAW 2000 taught by Professor Kniffin during the Spring '02 term at St. Johns Duplicate.

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Contracts II-Remedies - Contracts II Outline Justin Hoffman...

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