Source: https://matthewminer.name/law/outlines/1L/2nd+Semester/LAW+506-002+%E2%80%93+Contracts+II/Damages
Timestamp: 2020-07-02 10:15:53
Document Index: 160370972

Matched Legal Cases: ['§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 90', '§ 349', '§ 347', '§ 272', '§ 240', '§ 377', '§ 374', '§ 373', '§ 371', '§ 2', '§ 355', '§ 355', '§ 353']

Damages – Contracts II Outline
When a breach has occurred, the aggrieved party is entitled to seek remedies. While equitable remedies can be sought, courts usually prefer to award monetary damages if adequate.
There are three methods of calculating damages:
Expectation damages (to put into the position of if the full performance was made)
Reliance damages (to put into the position from before the contract was made)
Restitution damages (to compensate for unpaid-for benefits received)
Seller's Remedies UCC § 2-703
UCC § 2-703
Seller's Remedies in General.
Where the buyer wrongfully rejects or revokes acceptance of goods or fails to make a payment due on or before delivery or repudiates with respect to a part or the whole, then with respect to any goods directly affected and, if the breach is of the whole contract ([UCC § 2-612]), then also with respect to the whole undelivered balance, the aggrieved seller may
withhold delivery of such goods;
stop delivery by any bailee as hereafter provided ([UCC § 2-705]);
proceed under the next section respecting goods still unidentified to the contract;
resell and recover damages as hereafter provided ([UCC § 2-706]);
recover damages for non-acceptance ([UCC § 2-708]) or in a proper case the price ([UCC § 2-709]);
UCC § 2-708
Seller's Damages for Non-acceptance or Repudiation.
Subject to subsection (2) and to the provisions of this Article with respect to proof of market price ([UCC § 2-723]), the measure of damages for non-acceptance or repudiation by the buyer is the difference between the market price at the time and place for tender and the unpaid contract price together with any incidental damages provided in this Article ([UCC § 2-710]), but less expenses saved in consequence of the buyer's breach.
If the measure of damages provided in subsection (1) is inadequate to put the seller in as good a position as performance would have done then the measure of damages is the profit (including reasonable overhead) which the seller would have made from full performance by the buyer, together with any incidental damages provided in this Article ([UCC § 2-710]), due allowance for costs reasonably incurred and due credit for payments or proceeds of resale.
UCC § 2-709
Action for the Price.
When the buyer fails to pay the price as it becomes due the seller may recover, together with any incidental damages under the next section, the price
of goods accepted or of conforming goods lost or damaged within a commercially reasonable time after risk of their loss has passed to the buyer; and
of goods identified to the contract if the seller is unable after reasonable effort to resell them at a reasonable price or the circumstances reasonably indicate that such effort will be unavailing.
Where the seller sues for the price he must hold for the buyer any goods which have been identified to the contract and are still in his control except that if resale becomes possible he may resell them at any time prior to the collection of the judgment. The net proceeds of any such resale must be credited to the buyer and payment of the judgment entitles him to any goods not resold.
After the buyer has wrongfully rejected or revoked acceptance of the goods or has failed to make a payment due or has repudiated ([UCC § 2-610]), a seller who is held not entitled to the price under this section shall nevertheless be awarded damages for non-acceptance under the preceding section.
Buyer's Remedies UCC § 2-711
UCC § 2-711
Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance then with respect to any goods involved, and with respect to the whole if the breach goes to the whole contract ([UCC § 2-612]), the buyer may cancel and whether or not he has done so may in addition to recovering so much of the price as has been paid
"cover" and have damages under the next section as to all the goods affected whether or not they have been identified to the contract; or
recover damages for non-delivery as provided in this Article ([UCC § 2-713]).
Where the seller fails to deliver or repudiates the buyer may also
if the goods have been identified recover them as provided in this Article ([UCC § 2-502]); or
in a proper case obtain specific performance or replevy the goods as provided in this Article ([UCC § 2-716]).
On rightful rejection or justifiable revocation of acceptance a buyer has a security interest in goods in his possession or control for any payments made on their price and any expenses reasonably incurred in their inspection, receipt, transportation, care and custody and may hold such goods and resell them in like manner as an aggrieved seller ([UCC § 2-706]).
UCC § 2-712
"Cover"; Buyer's Procurement of Substitute Goods.
After a breach within the preceding section the buyer may "cover" by making in good faith and without unreasonable delay any reasonable purchase of or contract to purchase goods in substitution for those due from the seller.
The buyer may recover from the seller as damages the difference between the cost of cover and the contract price together with any incidental or consequential damages as hereinafter defined ([UCC § 2-715]), but less expenses saved in consequence of the seller's breach.
Failure of the buyer to effect cover within this section does not bar him from any other remedy.
Subject to the provisions of this Article with respect to proof of market price ([UCC § 2-723]), the measure of damages for non-delivery or repudiation by the seller is the difference between the market price at the time when the buyer learned of the breach and the contract price together with any incidental and consequential damages provided in this Article ([UCC § 2-715]), but less expenses saved in consequence of the seller's breach.
Market price is to be determined as of the place for tender or, in cases of rejection after arrival or revocation of acceptance, as of the place of arrival.
UCC § 2-714
Buyer's Damages for Breach in Regard to Accepted Goods.
Where the buyer has accepted goods and given notification ([UCC § 2-607(3)]) he may recover as damages for any non-conformity of tender the loss resulting in the ordinary course of events from the seller's breach as determined in any manner which is reasonable.
In a proper case any incidental and consequential damages under the next section may also be recovered.
UCC § 2-717
Deduction of Damages From the Price.
UCC § 2-723
If an action based on anticipatory repudiation comes to trial before the time for performance with respect to some or all of the goods, any damages based on market price ([UCC § 2-708] or [UCC § 2-713]) shall be determined according to the price of such goods prevailing at the time when the aggrieved party learned of the repudiation.
If evidence of a price prevailing at the times or places described in this Article is not readily available the price prevailing within any reasonable time before or after the time described or at any other place which in commercial judgment or under usage of trade would serve as a reasonable substitute for the one described may be used, making any proper allowance for the cost of transporting the goods to or from such other place.
Evidence of a relevant price prevailing at a time or place other than the one described in this Article offered by one party is not admissible unless and until he has given the other party such notice as the court finds sufficient to prevent unfair surprise.
UCC § 2-724
Admissibility of Market Quotations.
Reliance damage attempt to put the aggrieved party into the position that it would have been in if the parties had not entered into the contract.
Reliance damages compensate for expenses incurred by the aggrieved party in reliance on the existence of the contract, as well as lost opportunity costs, if provable.
While expectation damages are preferred, reliance damages may be used if there are no identifiable expectation damages or when the promise is enforced based on reliance.
Restatement Second of Contracts § 90
Restatement Second of Contracts § 349
Damages Based on Reliance Interest
As an alternative to the measure of damages stated in [R2C § 347], the injured party has a right to damages based on his reliance interest, including expenditures made in preparation for performance or in performance, less any loss that the party in breach can prove with reasonable certainty the injured party would have suffered had the contract been performed.
Restitution damages attempt to put the aggrieved parties into position that they were in before the contract was entered into.
Restatement Second of Contracts § 272
Relief Including Restitution
In any case governed by the rules stated in this Chapter, either party may have a claim for relief including restitution under the rules stated in [R2C § 240] and [R2C § 377].
In any case governed by the rules stated in this Chapter, if those rules together with the rules stated in Chapter 16 will not avoid injustice, the court may grant relief on such terms as justice requires including protection of the parties' reliance interests.
Restatement Second of Contracts § 374
Restitution in Favor of Party in Breach
Subject to the rule stated in Subsection (2), if a party justifiably refuses to perform on the ground that his remaining duties of performance have been discharged by the other party's breach, the party in breach is entitled to restitution for any benefit that he has conferred by way of part performance or reliance in excess of the loss that he has caused by his own breach.
To the extent that, under the manifested assent of the parties, a party's performance is to be retained in the case of breach, that party is not entitled to restitution if the value of the performance as liquidated damages is reasonable in the light of the anticipated or actual loss caused by the breach and the difficulties of proof of loss.
Restatement Second of Contracts § 373
Restitution When Other Party Is in Breach
Subject to the rule stated in Subsection (2), on a breach by non-performance that gives rise to a claim for damages for total breach or on a repudiation, the injured party is entitled to restitution for any benefit that he has conferred on the other party by way of part performance or reliance.
The injured party has no right to restitution if he has performed all of his duties under the contract and no performance by the other party remains due other than payment of a definite sum of money for that performance.
Restatement Second of Contracts § 371
the reasonable value to the other party of what he received in terms of what it would have cost him to obtain it from a person in the claimant's position, or
the extent to which the other party's property has been increased in value or his other interests advanced.
Liquidated Damages UCC § 2-718
Punitive Damages Restatement Second of Contracts § 355
Restatement Second of Contracts § 355
Restatement Second of Contracts § 353
Loss Due to Emotional Disturbance