Contracts - Michael R Ertel Contracts I Professor Kniffin...

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Contracts I Professor Kniffin FINAL : (Professor Kniffin) ext. 6634 (1) We need not memorize cases, BUT we do need to memorize the content of the UCC and Restatements [don’t give exact §’s, but do tell if it is UCC or Restatement. (2) Do not have to argue both sides, but must make the decision of the court. (3) Issues are the key, they are the most important to spot and write down. [Only talk about the issues in the problem, DO NOT ADD FACTS] (4) To begin (a) Ask if the UCC applies (Is there a sale of goods?) (b) Ask is this a S.O.F. K, must it be in writing? Note Bene: Some Judges/Lawyers do NOT believe in Public Policy at all. They believe you should focus only on the parties, issues and circumstances at bar. Goal of Contract Law: To compensate rather than punish. Compensation is usually in the form of money damages. Unilateral Contract seeks performance. (1-sided promise) Bilateral Contract seeks a promise. (2-sided promise) Law and Economics : It is possible to breach so you wont be hindered from being able to (1) breach (2) fully compensate the victim and (3) get a better deal elsewhere.(Efficiency) There are no punitive damages in a breach of K case. The court does not care why you breach only that you did. It is possible to breach, give other party expectation damages and still be better off by breaching. This is supposed to help the economic system as a whole. Types of Damages: *Damages do not usually cover lawyer’s fees.* (1) Expectation damages : [§2-713] (Usually the most often sought damage, usually gives the most money.) [Good for goods and services.] Expectation Damages can be sought by both buyers and sellers. “Puts the P in the position he would be had the K been performed.” [Puts the victim of the breach back where he was had the K not been breached.] (a) Damages for a result that did not occur because the party who breached failed to provide a good or service. (b) Award Given : Difference between FMV when buyer learned of breach (or cover price) and price agreed upon in the K, plus any incidental or consequential damages . [All of this minus any money P saved by not having to finish the K.] Cover : When buyer purchases reasonable substitute for lack of goods or services because of a breach. (Buyer must use good faith in covering.) If P does cover , he gets the difference b/w the purchase price and the contract price. P does not have to cover. If P does not cover then he is still compensated as if he did cover. P will get the difference between the K price and the FMV at the time P learned of the breach. [If you cover in bad faith, then treated as if you did not cover at all.] E.g. If buyer was supposed to buy for $10 and learned of the breach on a day where the market value was $15, he gets $5 in damages. (Cover price is price when buyer “learned” of the breach, NOT necessarily when the breach 1 st occurred.) E.g. If the buyer was supposed to purchase for $10 and then had K to sell for $12, then $2 in damages. 1
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This note was uploaded on 02/15/2008 for the course LAW 1090 taught by Professor Gegan during the Fall '03 term at St. Johns Duplicate.

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Contracts - Michael R Ertel Contracts I Professor Kniffin...

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