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
How are contract damages calculated?
loss of value
- costs avoided
+ incidental damages
(+ consequential damages)
What is loss of value?
promised vs received
MV vs contract price
value of the promised performance less value of received performance
What are incidental damages?
damages directly arising from breach of contract
What are consequential damages?
damages that are reasonably foreseeable consequence of contract breach
also as stated in the contract
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
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
What are the other kinds of damages, besides contract damages?
-- place nbp in position as if contract had not been made
-- recovery of benefits paid
-- loss is negligible or unproven ("no harm, no foul")
-- agreed to in advance, only enforced when reasonable amount
When can a NBP recover restitution?
What remedies besides damages are available in case of breach of contract?
equitable remedies (only if money is not enough):
-- court forces breaching party to perform (can't if service agreement => civil rights' issue)
-- court prohibits BP from doing sth
-- court corrects written contract to conform w/ original intent
What is special about remedies regarding the breach of a contract to sell land?
it's always subject to specific performance
Review questions for Business Law and the Regulation of Business, 10th edition, Mann&Roberts, chapter 18