This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Ch. 20Pt. 2 Dr. Deborah Pomeroy REVIEW BLaw 2361-S10 REMEDIES BOK = Breach of Contract P/D = P laintiff and D efendant NBP = Non-Breaching Party B/S = B uyer and S eller BP = Breaching Party C/O = C ontractor and O wner Dg = Damages Ct(s) = Court(s) MOD = Measure of Damages Pty = Party The second part of this chapter is concerned w/the remedies available to a non- breaching party [NBP] upon breach of contract (BOK) by a breaching party (BP) AND the measure of damages [MOD] for breach. A BREACH of K is the failure of a pty to substantially perform, without legal excuse , the ptys obligations under a K. When the BP fails to substantially perform, without legal excuse, the NBP can sue to obtain a REMEDY for BOK. The appropriate type of remedy and the MOD depends upon the type of K and circumstances of the case. IMPORTANT: If a pty substantially-performs a K, the failure to completely or perfectly perform will NOT be a material breach (which would mean that the NBP is discharged from his/her obligations under the K), RATHER, the substantially performing pty will owe DAMAGES measured by EITHER:--the cost to complete the K as promised, OR--if that cost is unreasonable , the DIFFERENCE IN VALUE between the performance promised and the performance received (which may be nothing as in the Jacob & Youngs v. Kent case).--When a pty BREACHES a K (failure to substantially perform without legal excuse), the NBP is discharged from duties under the K AND has a COA for 1 damages for breach. The MOD is loss of bargain or the amount which will put the NBP in the same position as if the K had been fully performed. [COMPARE to restitution which merely puts the party(ies) back in the position before the K was made.] Just as we have studied in other areas of the law, there are two broad categories of K REMEDIES : 1. LEGAL REMEDIES (monetary damages) 2. EQUITABLE REMEDIES (non-monetary damages), including:--RESCISSION AND RESTITUTION; --SPECIFIC PERFORMANCE; and --REFORMATION --INJUNCTION--As in other kinds of cases, Courts in K cases usually ONLY award equitable remedies IF monetary damages are not adequate OR not appropriate . $ LEGAL REMEDY = Money DAMAGES [ $ Dg ] EQUITABLE REMEDIES = --RESCISSION AND RESTITUTION; --SPECIFIC PERFORMANCE; and --REFORMATION --INJUNCTION TYPES OF $ DAMAGES The BASIC K REMEDY is $ DAMAGES . The PURPOSE of $Dg is to compensate the NBP for the loss of the bargain . This is the amount required to put the NBP in the same position as if the K had been performed. As in other areas of the law, such as torts, $Dg include : -- Compensatory OR Expectation Dg (which includes incidental ); -- Punitive Dg (rare in K cases)....
View Full Document
This note was uploaded on 09/24/2011 for the course BLAW 2361 taught by Professor Bible during the Spring '08 term at Texas State.
- Spring '08
- Business Law