REMEDIES Spring 2009

REMEDIES Spring 2009 - Amount of actual damages would be...

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REMEDIES Purpose (in contract) - not to penalize breaching party (punitive damages) Rather, to compensate aggrieved party i.e., to put in position would have been in if contract had been performed
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Damages – General Rule What would have received - What would have save +other damages resulting from breach
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Limitations on Damages Mitigation – taking reasonable steps to avoid loss Certainty Proximate and foreseeable result of breach But may be entitled to special damages - other party has reason to know
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Liquidated Damages Contract fixes amount other party has to pay if he breaches Generally one of 2 types Forfeit - e.g. down payment Fixed amount - e.g. delay damages in construction contract
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Liquidated Damages (cont.) General rule - responsibility of court, rather than parties, to fix damages But, court will enforce if at time contract made Reasonable estimate of loss that would result from breach and
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Unformatted text preview: Amount of actual damages would be difficult to determine at time of breach If unreasonable amount, will be considered penalty and will not be enforced Ex. delay damages $10,000 per day Other remedies Specific performance Not for personal services Injunction Restitution, quantum meruit Exs. Statute of Frauds Impossibility - either party Tortious Interference with Contract i.e., What if a third party causes the breach? Ex. A and B have contract, C induces B to breach A has claim against B for breach Tortious Interference (cont.) A also has claim against C for tortious interference if Valid and enforceable contract C knows of contract C induces Bs breach A suffers damages Why would A want to claim against C? C may have deeper pockets Tort remedies broader, including punitives...
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REMEDIES Spring 2009 - Amount of actual damages would be...

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