Summary of Article 2 Remedies
Buyer Breach (Nonpayment)
SELLER BREACH (BREACH OF WARRANTY)
Seller Recovers contract price
Buyer recovers value goods would have had if they had
been as warranted minus value of goods accepted
Statute of Frauds
If an oral contract falls within one of the categories of contracts that must be memorialized in a writing under the Statute
of Frauds, the contract is said to be within the Statute
If a contract is within the Statute it is unenforceab
Hadley v. Baxendale 9 Ex. 341, 156 Eng.Rep. 145 (Ct. of Exchequer 1854).
A shaft in Hadleys (P) mill broke rendering the mill inoperable. Hadley hired Baxendale (D) to transport the broken mill shaft to an
engineer in Greenwich so that he could make
Defenses to Contract Enforceability
I. Mutual (bilateral) Mistake
On May 5, April contracts to sell her famous race horse, Apex, to Mae. Unbeknownst to either party, Apex had died on the
night of May 4. The contract is voidable by Mae, because
Types of Remedies
1. Damages an award of money
2. Specific Performance an order from a court to a contracting party to perform as promised
Basic Measures of Damages
1.) Expectation damages
a. Expectation damages are based on the contract
Chapter 15 Statute of Frauds Writing Requirement and Electronic Records
I. The Origins of the Statute of Frauds
In 1677 England passed the law An Act for the Prevention of Frauds and Abuses.
Certain types of contracts must be in writing and signed by the
Contract may be unenforceable if the parties have not genuinely assented to its terms by:
Mistakes of Fact
Only a Mistake of Fact allows a contract to be canceled.
Chapter 18. Breach of Contract and Remedies
Most Common Remedies:
Rescission and Restitution.
Recovery Based on Quasi Contract.
Compensatory Damagesdesigned to compensate nonbreachin
Chapter 17: Performance and Discharge in Traditional and E-Contracts
A party may be discharged from a valid contract by:
A condition occurring - or not occurring.
Full performance or material breach by the other party.
Agreement of the parties.
Chapter 16 Third Party Rights
Privity of Contract: only original parties to a contract have rights and liabilities under the contract.
Assignment or Delegation.
Third party Beneficiary Contract.
I. Assignments and Delegations
Assignment and Delegation
With respect to the principles of assignment and delegation, rights are assigned while duties are delegated. Assignments and
delegation can be either oral or in writing unless the transaction falls within the statute
Chapter 11 Agreement in Traditional Contracts
Agreement = offer and acceptance.
Parties must show mutual assent to terms of contract.
Once an agreement is reached, if the other elements of a contract are present, a valid contract is formed