contracts rules

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The flashcards below were created by user tmoy4565 on FreezingBlue Flashcards.


  1. Issue: Whether a non-breaching party to a contract may recover damages for unforeseen losses based on another party’s breach of contract.
    Rule of law: When one party breaches a contract, the non-breaching party may recover damages based on the difference between the value of the contract as fully performed and the actual value of the non-breaching party’s present condition, plus any incidental damages reasonably foreseeable to all parties at the time of contract formation.
  2. Issue: Where an agreement for consideration is breached, is a jury award limited to the value of the consideration?
    Rule of law: Where an agreement for consideration is breached, a jury award is not limited to the value of the consideration.
  3. Issue: Are pain and suffering and emotional distress available as contract damages under either an expectancy or reliance measure?
    Rule of law: Pain and suffering and emotional distress that flow naturally from a breach are compensable contract damages under either an expectancy or reliance measure.
  4. Issue: Should a contract for mixed services and goods always be interpreted pursuant to Article 2 of the Uniform Commercial Code?
    Rule of law: The law for determining the appropriate award for mixed services and goods is based upon the primary subject of the contract and, when the primary subject is services, the appropriate award is that which would place the non-breaching party in a position that is as good as if there had been no breach.
  5. Issue: If the difference between the market price and the contract price exceeds the buyer’s actual loss, may the court limit damages to the amount of the actual loss?
    Rule of law: The appropriate remedy for a seller’s failure to deliver contract goods is the difference between the contract price and the market price, even where this measure of damages exceeds the buyer’s actual loss.
  6. Issue: Where a party has substantially but not fully performed its obligations under a construction contract, and the breach is willful, are damages for breach calculated as the cost of completing the performance?
    Rule of law: Damages for willful breach of a construction contract, even where there has been substantial performance are awarded as the cost of completing the failed performance.
  7. Issue: Whether, in an action for breach of an agreement to perform remedial work on property, damages should be measured by the diminution in value of the premises resulting in non-performance if the economic benefit which would result to the property owner from full performance is grossly disproportionate to the cost of performance.
    Rule of law: Regardless of any agreement of the parties, damages awarded for breach of an agreement to perform remedial work on property should normally be measured by the reasonable cost of performance of the work; but, when the contract provision breached is merely incidental to the main purpose in view and where the economic benefit which would result to the owner from full performance is grossly disproportionate to the cost of performance, damages should instead be limited to the diminution in value resulting to the premises because of the non-performance.
  8. Issue: Whether an award of damages for one party’s breach of a contract may include all damages reasonably foreseeable to both parties at the time of contract formation, as well as damages stemming from any special circumstances, even if those circumstances are not known by all parties at contract formation.
    Rule of law: When one party breaches a contract, the other party may recover all damages that are reasonably foreseeable to both parties at the time of making the contract, as well as damages stemming from any special circumstances, provided those circumstances were communicated to and known by all parties at contract formation.
  9. Issue: Is the loss of use of an entire machine due to delayed transport foreseeable?
    Rule of law: An innocent party will be awarded foreseeable losses, but special damages also if he has given the defendant actual notice of the possibility of injury.
  10. Issue: Does a contracting party agree to any and all unwritten terms that can be assumed to have been part of the original agreement?
    Rule of law: The tacit agreement test says that one agrees to all terms of a contract that can reasonably be assumed to be part of the agreement, but one cannot be liable for special circumstances of which one did not have actual notice.
  11. Issue: In a breach of contract action, can the plaintiff recover on related expenses incurred before the contract was formed or after the contract was breached?
    Rule of law: In an action for breach of contract, a party can recover only on damages which naturally flow from and are the result of breach.
  12. Issue: Can an innocent party recover all of its lost expenditures when the contract is breached?
    Rule of law: An innocent party may recover expenditures in lieu of lost profits, including those expenditures incurred both before and after the agreement was made.
  13. Issue: Can an innocent party recover expenditures when the contract is breached?
    Rule of law: An innocent party may recover her lost expenditures, including any reasonable capital investment, but the recovery may be set off if the breaching party can prove that there would have been a loss.
  14. Issue: Whether, after receiving notice of a party’s breach of a contract for services, the non-breaching party may continue to perform the contract to completion and recover the full contract price.
    Rule of law: When a non-breaching party in a contract for services receives notice of another party’s breach, the non-breaching party must treat the contract as broken when notice is received, cease performance, and sue for any losses sustained from the breach as well as profits that would have been realized upon performance.
  15. Issue: Whether an actress must accept a role in a different film to mitigate damages from the film producer’s failure to produce the original film.
    Rule of law: The measure of recovery by a wrongfully discharged employee is the amount of salary agreed upon, less the amount which the employee has earned or with reasonable effort might have earned from substantially similar employment.
  16. Issue: Whether the damages due to a lost volume seller after a buyer’s repudiation of a contract are properly measured by the profit the seller would have made from full performance by the buyer, plus reasonable incidental damages associated with resale.
    Rule of law: If a buyer repudiates a contract with a lost volume seller, the seller is entitled to the profit the seller would have made from full performance by the buyer, plus reasonable incidental damages associated with resale.
  17. Issue: Can specific performance be awarded for the breach of a contract requiring the personal service of an actor?
    Rule of law: Specific performance cannot be awarded for breach of a personal service contract, especially when the specific performance is requested of an actor.
  18. Issue: Can a party breaching a contract for personal services be enjoined from providing like services under another contract when the contract does not contain explicit language prohibiting such future agreements?
    Rule of law: A party breaching a contract for personal services may be enjoined from providing like services under another contract, even when there is no explicit language to enjoin such future agreements.
  19. Issue: Should specific performance be awarded when the breached contract at issue involves real property?
    Rule of law: Equity courts should award specific performance “as a matter of course” and especially when the subject of the contract is real property or an interest in real property.
  20. Issue: Can specific performance be awarded when the subject of the agreement is personal property?
    Rule of law: Specific performance is generally not awarded when the subject of the agreement is personal property, but there are three exceptions to the general rule: (1) when a damage award would not be an adequate remedy, (2) when the personal property has “peculiar, sentimental or unique value,” and (3) when such personal property is not easily obtainable because it is rare.
  21. Issue: Is an injured party entitled to replevin of goods when he has not fully performed under the contract, but paid a deposit for the goods?
    Rule of law: In a replevin action under section 2-716 of the Uniform Commercial Code, an injured party does not have an “exclusive and immediate right” to property for which he has only paid a deposit because the contract is still executory.
  22. Issue: Can specific performance be awarded for the sale of a limited edition vehicle?
    Rule of law: Specific performance can be awarded for the sale of a limited edition vehicle if the injured party can establish that it is unique or other proper circumstances exist.
  23. Issue: Can a contract for personal service be enforced through specific performance?
    Rule of law: Specific performance cannot be awarded when the contract is for personal service.
  24. Issue: May a court impose a negative injunction on an individual, preventing her from doing something she indirectly contracted
    Rule of law: Even where there is no adequate remedy at law, a court of equity will generally not specifically enforce a personal services contract.
  25. Issue: Can a clause in a contract enjoining a party from performing for others be enforced?
    Rule of law: A clause in a contract enjoining a party from performing for others will be enforced if the breaching party possesses “exceptional and unique knowledge, skill and ability in performing the service called for in the contract.”
  26. Issue: Can damages be recovered for breach of a contract within the statute of frauds if the breaching party does not benefit from the breach?
    Rule of law: Damages cannot be recovered for breach of a contract within the statute of frauds if no benefit is conferred on the breaching party.

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Author:
tmoy4565
ID:
326498
Filename:
contracts rules
Updated:
2016-12-05 04:05:48
Tags:
contracts
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contracts rules
Description:
contracts rules
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