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Compensatory Damages (4 elements)
Contract damages placing the NBP in as good an economic position as he would have been in if the BP had performed. Formula: (1)Loss of Value - (2)Costs Avoided + (3)Incidental Damages + (4)Consequential Damages (these are iffy)
Loss of Value
- Difference between Market Value & Contract Price
- * MV - K Price for Buyer Award
- * K Price - MV for Seller Award
Costs the NBP avoids by not having performed the K
Arise directly out of a breach
Normally considered lost profits to NBP. Hard to prove and very iffy since court doesn't want to punish BP.
Limits on Recovery of Consequential Damages
- * Foreseeability of Damages - NBP must prove that the BP had actual reason to know at the time the contract was made that the NBP would suffer this type of loss if a breach occured
- * Certainty of Damages - NBP must prove the amount of this type of loss w/ reasonable certainty.
- * Mitigation of Damages - NBP must prove that this type of loss could have been avoided by reasonable effort on the part of the NBP.
Other Types of Damages
- Reliance Damages - Place NBP in as good a position as they would have been if contract had NOT been made.
- Restitution - Recovery of benefits the NBP conferred to BP
- Nominal Damages - a small sum awarded where a contract has been breached but the loss is negligible or unproved.
- Punitive Damages - Generally not recoverable fo K's
- Liquidated Damages - damages agreed to in advance by the parties to a contract; will only be enforced if the amount is reasonable.
Two Situations where NBP May Seek Restitution
- 1.) Voidable K's - a party avoids a contract may get restitution for any benefit conferred to the other party
- 2.) Statute of Frauds - if K is unenforceable b/c of the SOF, a party may recover the benefits conferred on the other party in reliance on the contract
Remidies in Equity (3)
- Available only where there is no adequate remedy at law (e.g. money won't suffice)
- *Specific Performance, Injunction, Reformation
Court decree ordering BP to render promised performance.
Court order prohibiting BP from doing a specific act. Can't require BP to do something, only to NOT do something. (e.g. can't force singer to sing at place A but can make them not sing at place B if it would breach contract with place A)
Court order correcting a written contract to conform with the original intent of the contracting parties.