COMMERCE 4SD3 Chapter Notes - Chapter 15: Quantum Meruit, Equitable Remedy, Expectation Damages
13 Jan 2017
School
Department
Course
Professor
Ch 15: Remedies for Breach
Types of Remedy:
- Damages
- Equitable remedies
o Specific performance
o Injunction
o Rescission
- Quantum meruit
Damages:
The Purpose of an Award:
- Purpose of damages is to place the injured party in the same position as if the
breach had not occurred/ contract was completed
- Intended to compensate for loss from failure to perform not to punish the party
liable for the breach
Mitigation of Damages:
- Party suffering from the breach is expected to take steps to mitigate its damages
- Innocent party can only collect damages for the breach that could not be
reasonably avoided
Prerequisites for an Award of Damages:
- Damages arising from breach of contact must “flow naturally from the breach”
- Losses caused by breach must be in the foreseeable limits
- Not awarded for special or unexpected consequences of breach
- Can be informed of a special liability before contracting, then it will be held to if
they fail to perform
The Measurement of Damages:
Expectation Damages:
Differences Between Tort and Contract:
- Expectation damages: an amount awarded for breach of contract based on
expected profits
- Time for determining whether damages are foreseeable is when contract is
formed not when the breach occurs
- Time for determining the amount of damages is then as well
Opportunity Cost:
- Opportunity cost: the list chance of making a similar contract with a different
promisor
- By including opportunity cost in damages rewarded we can create an effective
system of business where contracts will carry weight
Contract of Sale:
- If demand can be met or exceeded then a breach contract
o damages would include the cost of lost profits because the seller has no
trouble selling its goods
- If limited demand where seller would not have been able to sell it to someone
else when the party that committed the breach wanted it
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Purpose of damages is to place the injured party in the same position as if the breach had not occurred/ contract was completed. Intended to compensate for loss from failure to perform not to punish the party liable for the breach. Party suffering from the breach is expected to take steps to mitigate its damages. Innocent party can only collect damages for the breach that could not be reasonably avoided. Damages arising from breach of contact must flow naturally from the breach . Losses caused by breach must be in the foreseeable limits. Not awarded for special or unexpected consequences of breach. Can be informed of a special liability before contracting, then it will be held to if they fail to perform. Expectation damages: an amount awarded for breach of contract based on expected profits. Time for determining whether damages are foreseeable is when contract is formed not when the breach occurs.
