Contracts II Outline (Maddie)

Contracts II Outline (Maddie) - CONTRACTS Start paragraph...

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CONTRACTS Start paragraph for each new topic!! THE COMPENSATION PRINCIPLE R. 344- Purpose of Remedies Judicial remedies under the rules stated in R. serve to protect one or more of the following interests of a promise: a. his expectation interest, which is his interest in having the benefit of his bargain by being put in as good a position as he would have been in had the K been performed b. his reliance interest, which is his interest in being reimbursed for loss caused by reliance on the K by being put in as good a position as he would have been in had the K not been made, or c. his restitution interest, which is his interest in having restored to him any benefit that he has conferred on the other party I. EXPECTATION REMEDIES a. Put someone in as good a position as he would be in had the K been fully performed b. LIMITATIONS: i. Doctrine of Mitigation 1. An injured party cannot recover damages for losses that, with reasonable effort, he could have avoided after promisor’s breach became known 2. Party should try to reduce amount of damages that would be payable 3. Not absolute (e.g. not required to take any type of employment) 1. Parker v. 20 th Century Fox 2. Shirley MacLaine case 4. Limitation to damages, but not always required in CL, let alone UCC 5. Cover damages 1. UCC doesn’t require buyer to cover ii. Lost Volume Seller Exception UCC 2-708(2)- if standard damage measure is inadequate to put the seller in as good a position as performance would have done because the buyer’s breach entails the loss of a profitable sale, then the seller’s damages shall instead be the profit (including reasonable overhead) which the seller would have made from full performance by the buyer 1. Neri v. Retail Marine 1. Case with boat where P demanded return of deposit 2. D could have had two sales instead of one if P hadn’t breached
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3. Had sufficient inventory iii. Lost Profits 1. Damages must be reasonably foreseeable and proven with reasonable certainty R. 352- Uncertainty as a Limitation on Damages Damages are not recoverable for loss beyond an amount that the evidence permits to be established with reasonable certainty 2. Locke v. US 1. Lost profits recoverable where reasonable probability of damage and reasonable basis for contemplation 2. Locke was owner of typewriter company and awarded GSA Federal Supply Schedule K, a requirements K, for name to be placed in Fed Supply Schedule. He was one of four companies awarded K. His name was stricken from schedule four months early (mistakenly thought he was in breach). 3. If reasonable probability of damage can be clearly established, uncertainty as to amount will not preclude recovery. 4. Just because other side breaches doesn’t mean you have automatic right to cancel K. 3.
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This note was uploaded on 04/18/2011 for the course LAW 101 taught by Professor Many during the Spring '11 term at University of Louisville.

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Contracts II Outline (Maddie) - CONTRACTS Start paragraph...

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