1. What is the "benefit of bargain"?
    placing the non-breaching party in as good a position as they would have been had the contract been fully performed
  2. How are contract damages calculated?
    • loss of value
    • - costs avoided
    • + incidental damages

    (+ consequential damages)
  3. What is loss of value?
    • promised vs received
    • MV vs contract price

    value of the promised performance less value of received performance
  4. What are incidental damages?
    damages directly arising from breach of contract
  5. What are consequential damages?
    damages that are reasonably foreseeable consequence of contract breach

    also as stated in the contract
  6. What are the requirements to recover consequential damages?
    • foreseeability -- breaching party knew of possible damages at time of contract
    • certainty -- non-breaching party must prove amount of damages
    • mitigation -- damages could not have been avoided by reasonable effort by nbp
  7. Why are consequential damages harder to recover?
    = punitive damages

    objective of contract law is to compensate non-breaching party not punish breaching party

    law wants parties to act in their best interest
  8. What are the other kinds of damages, besides contract damages?
    reliance damages -- place nbp in position as if contract had not been made

    restitution -- recovery of benefits paid

    nominal damages -- loss is negligible or unproven ("no harm, no foul")

    liquidated damages -- agreed to in advance, only enforced when reasonable amount
  9. When can a NBP recover restitution?
    • voidable contract
    • unenforceable contract
  10. What remedies besides damages are available in case of breach of contract?
    equitable remedies (only if money is not enough):

    specific performance -- court forces breaching party to perform (can't if service agreement => civil rights' issue)

    injunction -- court prohibits BP from doing sth

    reformation -- court corrects written contract to conform w/ original intent
  11. What is special about remedies regarding the breach of a contract to sell land?
    it's always subject to specific performance
Card Set
Review questions for Business Law and the Regulation of Business, 10th edition, Mann&Roberts, chapter 18