Shapiro, Michael -Contracts I

Shapiro, Michael -Contracts I - Michael Shapiro Contracts I...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Michael Shapiro Contracts I – Fall 2005 Prof. Kniffin 1. Enforcing Promises a. Purpose of relief i. Contract law aims to compensate an aggrieved party, not to punish the one who breached ii. Although we don’t want to encourage breaches, the free market system and the legal system work better when people are allowed to breach: 1. When breach is in the best interest of society 2. When breach is in the interest of the market. b. Relief i. Money damages 1. The usual form of relief 2. Usually money damages are in the form of expectation damages a. The judgment puts the π where they expected to be at the completion of the contract b. Legal fees are not compensated for in breach 3. Pain and suffering or punitive damages are not, generally, awarded in contract cases ii. Specific Performance (requirements for) 1. Money damages are not adequate to fulfill π ’s expectation. a. Goods are unique. b. Aggrieved party cannot cover. c. Not enough information to adequately calculate damages. 2. Specific Performance will not require too much interference or oversight from the courts ( Michlovitz v Eastern Rolling Mill ) 3. Contract clearly describes performance required. a. Clear and unambiguous decree from the court. b. is subject to contempt of court for failure to comply. Need a means to ensure can comply. 4. Court will not force antagonistic parties to cooperate. c. Types of Money Damages i. Expectation or Compensatory Damages 1. Cover (UCC §2-712) a. Requirements i. Good faith effort ii. Without unreasonable delay iii. Purchased goods in substitution b. Rule i. Buyer may recover the difference between the cost of cover and the contract price and ii. Any incidental or consequential damages (UCC §2-715) iii. Less expenses saved as a consequence of the seller’s breach. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Michael Shapiro Contracts I – Fall 2005 Prof. Kniffin 2. No Cover (UCC §2-713) a. When Buyer chooses not to purchase substitute goods. b. Rule i. Difference between market price at the time the buyer learned of the breach and the contract price 1. determined as of the place for tender or, 2. in cases of rejection or revocation of acceptance, as of the place of arrival ii. Any incidental or consequential damages (UCC §2-715) iii. Less expenses saved as a consequence of the seller’s breach. 3. Incidental and Consequential Damages (UCC §2-715) a. Incidental: i. Expenses reasonably incurred in the inspection, receipt, transport and care of rejected goods. ii. Expenses reasonably incurred in effecting cover. iii. Any other reasonable expenses incident to the breach. b. Consequential i. Any loss that the seller knew or had reason to know the buyer would incur that could not reasonably be prevented by cover or other means ( foreseeablility required ). ii.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 17

Shapiro, Michael -Contracts I - Michael Shapiro Contracts I...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online