CONTRACTS OUTLINE -Fall[1] - REMEDIES Expectancy damages...

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REMEDIES Expectancy damages (breach k) (rare PE) $$ equivalent of what expected from K. reliance damages (p.e.) (breach K) Put in position prior to K Liquidated (breach K) Measure of d contractually agreed prior to breach Emo distress/Punitive Damages [tort] (negligence) Given to negligent breach and/or intentional tort Restitution (u.e.) (unenf. K) (breach) Measure of $$ benefit conferred to k breacher Specific Performance (K) Court orders breacher to perform as k specified O – A – C – D : Offer, Acceptance, Consideration, Damages Bargain Theory for Enforcing Promises and Requirement of Agreement A. Bargain Theory of Consideration 1) Bargained-for exchange v. Gift Promise i. Promise is a manifestation of intention to act or refrain  from acting in a specified way, so made as to justify a  promise in understanding that a commitment has been  made. ii. Bargain is agreement to exchange a promise for a  performance or to exchange performances.  iii. Gift Promise is a benefit to be bestowed w/o cnsdrxn. 2) Promisor’s Motive  i. P can have mixed motives  ii. Reasonable person will believe motive given for promise  reasonable.  May even be insignificant. iii. Reasonable person must believe promisor’s motive to  extract, but also that promise actually induces promisee’s  consideration (must not be already Performing or FBx).  iv. Actual motive irrelevant. 3) What must be Extracted
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i. Must be bargained for performance, forbearance  (including legal rights), implied efforts a.k.a. instinctive  from K, satisfaction clause, NOT past consideration. ii. Executory Bilateral Exchange each party both a promisor  and a promisee.  iii. Consideration extracted may be a benefit to promisor OR  detriment to promisee. 4) Forbearance to sue as Consideration i. Forbearance of invalid claim not consideration. Courts  will not enforce because public policy against extortion. ii. If claim “colorable” or “doubtful” meaning one reasonable  thought one had valid claim, forbearance treated as good  consideration, as long as reasonable person could  believe in one’s good faith/honesty.  5) Policies behind enforcing BfE i. BfE has Evidentiary, Cautionary, and Channeling Fx. ii. BfE provides efficient allocation, private autonomy. iii. Bfe contributes to production of wealth and division of  labor. iv. Enforcing BfE protects ppl who rely on agreements. v. Enforcing gift promises devalues symbolic meaning. vi. Enforcing gift promises when reasonable detrimental  reliance occurs prevents injustice.
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This note was uploaded on 03/31/2008 for the course LAW 5041 taught by Professor Summers during the Fall '07 term at Cornell University (Engineering School).

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CONTRACTS OUTLINE -Fall[1] - REMEDIES Expectancy damages...

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