Contracts2 - Contracts II Prof Weiskopf REMEDIES FOR BREACH...

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Contracts II – Prof. Weiskopf REMEDIES FOR BREACH OF CONTRACT - Relief for breach of contract is usually substitutional – usually money damages rather than specific relief. This is in keeping with the common law, which traditionally did not award specific relief in the instance of breach. Cases at equity, however, did at times allow for specific relief (court orders the breaching party to do or not to do something). - You make the other party whole by giving them what they lost, not what you gained. Measure of damages is what the other party lost (not what breaching party made as a result of the breach). As long as the breach-er is willing to make the other party whole again, he is free to breach. The law is not interested in discouraging breaches, they are interested instead in remedying the breach. Approaches to measuring monetary relief: 1. Expectancy 2. Reliance – based 3. Restitution Specific/injunctive relief – if court orders these, the breacher owes something other than the payment of money – such as a unique performance (Court will not, however, order specific performance of a contract to provide a service that is personal in nature). Court will not, however, grant an injunction unless the remedy in damages would be inadequate. 2 Types of injunctions – prohibitory & mandatory - prohibitory – court enjoins one party from doing something - mandatory – court forces the party to do something Condition: an event that is not certain to occur, but that must occur in order for a valid agreement to be formed. Equitable relief is discretionary. 2-716 (where goods are unique, or in other proper circumstances) The test of uniqueness is made in terms of the total situation which characterizes the contract. Output and requirement contracts involving a particular or peculiarly-available source or market present the typical commercial specific performance situation. Inability to cover is strong evidence of “other proper circumstances” Cases About Whether or not to Award Specific Performance - Klein v. PepsiCo – “Specific performance is inappropriate where damages are recoverable and adequate. A mere increase in the cost of a replacement does not merit the remedy of specific performance.” - Laclede Gas Co. v. Amoco Oil Co. – This case explores other proper circumstances in which specific relief might be ordered.
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o Held: “There is no requirement in the law that both parties be mutually entitled to the remedy of specific performance in order that one of them be given that remedy by the court.” o Court will supervise in a case like this where public interest is at stake. o Today, most cases where specific performance is ordered are about commercial output and requirements contracts. -
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Contracts2 - Contracts II Prof Weiskopf REMEDIES FOR BREACH...

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