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- Plaintiff after notice of breach has a duty to discontinue work, in order to limit damages.
What is the plaintiffs remedy for a broken contract?
sue for the recovery of such damages plaintiff may have sustainded from breach.Including any profit which may have realized upon performance. As well as any other losses
Rule for recovery for a wrongfully discharged employee
amount of salary agreed upon for the period of service, less the amount which the employer affirmatively proves the employee has earned, or with reasonable effort might have earned from other employment.
How does the ucc relate to cancelled service terms. 2-704
if the buyer refuses payment has the ability to finish performance and sure full finished price.
Loss In Value
the difference between value of the performance that should have been received and value of what was received.
What costs you avoid because of the breach
Incidental and Consequential Damages
non breaching party to attempt to limit damages
- 1) When expectancy damages are too uncertain.
- 2) If expectancy then promissory estoppel.
- What you expend on reliance on a promise (+) consequential and incidental.(other loss)
Loss in value
Additional costs incurred after the breach in a reasonable attempt to avoid loss
- Losses beyond general damages that
- the plaintiff would never have incurred but for the breach.
- - Amount saved by nonbreaching party
- by avoiding some loss.
When the expectation damages associated with a contract are too uncertain, reliance
damages may be available.
Expenditures made in preparation for performance or in performance, less any loss that the party in breach can prove with any reasonable certainty the injured party would have suffered had the contract been performed.
Advertisement As An Offer
Where an advertisement is clear, definite, and explicit, and leaves nothing open for negotiation, it constitutes an offer, acceptance of which will complete the contract.
A manifestation of willingness to enter into a bargain is not an offer if the person to whom it is addressed knows or has reason to know that the person making it does not intend to conclude a bargain until he has made a further manifestation of assent.
Mirror Image Rule
Under the common law, a purported acceptance that adds (even trivial) qualifications or conditions operates as a counter-offer and thereby a rejection of the offer.
Under the CISG what things "materially alter" contracts
- Extent of one parties liability to the other
- Settlement of disputes
CISG Battle of the Forms
- Additions limitations or modifications are rejections of the offer and only classified as counter-offer.
-Not material alterations to contract are acceptance unless objection is made with undue delay.
Anoffer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option contract to the extent necessary to avoid injustice.
- (1)An offer is binding as an option contract if it
- (a) is in writing and signed by the offeror, recites a purported consideration for the making of the offer, and proposes an exchange on fair terms within a reasonable time; or
- is made irrevocable by statute.
- An intentional reduction to tangible form.
- - Emails are included.
Reasonable time under the UCC involves:
- - Nature
- - Purpose
- - Circumstances
- The mailbox rule does not apply to option contracts.
"so long as"
Fee Simple Determinable
Fee simple subject to a condition subsequent language:
O retains the right of re-entry
No liquidated damages should be allowed where the seller in fact suffered no damages.
Court held it was necessary for damages to be readily ascertainable at time of drawing of the contract in order for liquidated damage clause to be a penalty or forfeiture
A court has held that the contract provision of breaching party for liqidation damages was a penalty because there were outside reasons the contracts did not have to be completed as soon as it was suppose to be.
means that the contractual provision was so unfair that the court will not enforce it.
What does "failure of its essential purpose" mean?
Punitive damages are not recoverable for a breach of contract unless the conduct constituting the breach is also a tort for which punitive damages are recoverable.
Common Law Damages Formula
- Unpaid Contract Price
- Costs that Plaintiff saved by not having to complete contract
Ucc Formation of a Contract
-A contract for sale of goods may be made in any manner sufficient to show agreement, including conduct
by both parties which recognizes the existence of such a contract.
- - An agreement sufficient to constitute a
- contract for sale may be found even though the moment of its making is undetermined.
-Even though one or more terms are left open a contract for sale does not fail for indefiniteness if
the parties have intended to make a contract and
there is a reasonably certain basis for giving an appropriate remedy
2-205 Firm Offer
- -An offer by a merchant to buy or sell
- goods in a signed writing which by its terms give assurance that it will be
- held open is not revocable, for lack of consideration, during the time stated
- or if no time is stated for a reasonable time, but in no event may such period
- of irrevocability exceed three months; but any such term of assurance on a form
- supplied by the offeree must be separately signed by the offeror.
Duty To Mitigate
The mitigated employment must be sufficiently inferior in order for the non breaching party to accept the job.
Define "cover" under the UCC
Making in good faith and without reasonable dealy any reasonable of or contract to purchase goods in substitution for those due from the seller.
Buyers damages for non-delivery or repudiation 2-713
Difference between market price at the time when the buyer learned of the breach and the contract price together with any incidental and consequential damages.
Repudiation = refusal to acknowledge or pay a debt
Ucc Sellers remedies
- 1)Withold delivery of goods
- 2)stoped delivery by any bailee as provided
- 3)resell and recover damages
- 4)recover damages for non acceptance
sellers resale including contract for resale 706
1) seller may resale the goods as long done in good faith and commercially reasonable manner... and may recover the differnece between resale price and contract price along wiht incidental minus consequential
2) sale can be: public or private, one or more contracts, in units or parcels, but every aspect: method manner time place must be commercially reasonable.
3) IF privite re sale the seller must giver the buyer reasonable notification ... notification of time and plaec is not required.
- 4)- made at the usual place or market if one is reasonably available and except where the goods are perishable or threaten to to decline in value speedily the seller muist give the buyer reasonable notice of time and place of resale. ....
- - goods must be within view or notification of where the goods are must be made ...
- -seller may buy
5)Purcherser who buys in good faith takes free any rights of te origional buyer.
Buyers Incidental and consequential damages 715
: expences reasinably incurred in inspection , receipt, transportation, and care and custody of good rightly rejected..
- Consequential: any loss resulting from general or particular requirements and needs of which the seller at the time of contracting had reason to know nad which could not have reasonably be preventd by cover. orinjury to person or property proxemity resulting from any breach of warrenty.
look for ambiguty.... in our class MInority Majority
Must outline your answer!!!!!!
outline, highlight , EnE sample questions
- what type of breach was it
- who breached
- what are the terms of the contract
- what damges d buyer and seller get.
- expectation damages lv ol la ca
- cant get market prce if you cover
cant get market prce if you cover