Jane Black Contracts I Ouline

Jane Black Contracts I Ouline - CONRACTS I Professor...

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1. The law is concerned mainly with relief of promises rather than punishment of promisor’s to compel performance. Compensate the victim of a breach rather than punishing the breaching party. 1. Economics of breach : it may sometimes be in society’s interest that the contract be broken and the resources allocated. Preventing the breach might impair the efficient allocation of resources . 2. The relief granted to the aggrieved party should protect the party’s expectation by putting that party in the position in which it would have been had the contract not been breached. 3. The appropriate form of relief is substitutional, awarding money damages rather than ordering the promisor to perform its promise. 1. CONTRACT REMEDIES 1. Liquidated Damages Contract itself states what the damages will be in case of breach 2. Court Costs Filing fees, but not attorney fees 3. Nominal Damages Happens when a particular party breached but no damages have been proven. They are symbolic damages with very little monetary value— make the winning party feel vindicated. 4. Punitive Damages Not awarded in contracts! 2. MONEY DAMAGES A. EXPECTATION usually the most sought after damage A. Puts P in position would have been had K been performed 1. Puts P FORWARD in time CONRACTS I Professor Kniffin Prepared By: Jane A. Black ALWAYS ASK 1. Whether it is a sale of goods 2. Whether the Statute of Frauds applies 3. MERCHANT person in the business of buying or selling goods 4. UCC §2-207 is applicable when the terms of the acceptance do not match the terms of the offer I. THREE PRINCIPLES OF CONTRACT LAW II. DAMAGES
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B. Sale of Goods- Repudiation by Seller- U.C.C. §2-711 2. Where the seller fails to make delivery or repudiates 3. Or the buyer rightfully rejects or justifiably revokes , the buyer may: 1. Recover the part of the K that has been paid AND 2. “Cover” and have damages under §2-712 (cover formula) as to all good affected or 3. Recover damages under §2-713 (market price formula) C. COVERING- U.C.C. §2-712. Think: Laredo Hides Covering for breach of contract is making: 1. In good faith (honest in your intentions) and 2. Without reasonable delay (wait too long market price may go up) 3. Reasonable purchase of or contract to purchase like goods in substitution for those due from the seller (if you contracted to buy low quality goods and cover with high quality that is not reasonable) a. Cover awards are not discretionary b. Buyer is not required to cover c. If the aggrieved party does not cover, or fails to meet the requirements for cover, the way to compute the expectations is with the Market Price Formula §2-713 d. Laredo Hides : When D breached, P was forced to buy hides on open market for more than K price. The defendant had to pay P the difference between the contract and cover price as well as additional expenses and transportation costs.
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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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Jane Black Contracts I Ouline - CONRACTS I Professor...

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