Source: http://www.flashcardexchange.com/cards/contracts-944529
Timestamp: 2013-05-19 15:03:01
Document Index: 443718143

Matched Legal Cases: ['§2', '§2', '§2', '§2', '§2', '§2', '§2']

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By cital8,
Dec 2009 Subjects: 1l contracts Hated It
Breach by Service Provider
Cost to Complete Cost to Complete
- Unpaid K price
+ Incidental Damages
+ Consequential Damages
TOTAL Damages to Receiver
• Arguments for Cost to Complete
1. There was bad faith in the service
2. The work done was not of like type/cost
3. Problem was an essential provision of K Breach by Service Provider
Diminution of Value Value of Prop. w/ the Repair
- Value of Prop. w/o the Repair
• Arguments for Diminution of Value
1. The building was safe and livable as IT was built
2. Gross Economic Waste wins EVERY time
3. Mistake made in good faith Breach by Service Receiver
K Price Entire K Price - Installments Paid to Date
- Costs Avoided
TOTAL Damages to Provider
Both Service Receiver breach formulas aim to give the Builder the profit he lost Breach by Service Receiver
Net Expenditures Net Expenditures (Costs – Paid)
- Value of Materials On Hand
+ Profit Proved w/ Reasonable Cert
_____________________________ TOTAL Damages to Provider Breach by Seller
§2 - 711
Buyer's Remedies - When the seller fails to make delivery or repudiates; or the buyer rightfully rejects or revokes acceptance; and the breach goes to the whole K, the buyer may cancel and either “cover” or recover damages for “non-delivery.”
- “The Great Unwashed” When a buyer receives goods that are not to specification in the contract, the buyer can keep the goods and sell them as an "aggrieved seller"
- If the B rightfully rejects the goods, he can recover for “expenses reasonably incurred in their inspection, receipt, transportation, care and custody” Breach by Seller
§2 - 712
Cost to Cover - The buyer may cover in good faith and w/o unreasonable delay for the K goods (not required to seek cover)
Cost to Cover
+ Incidental
+ Consequential
- Expenses Saved
TOTAL damages to Buyer
- To use Cost to Cover, P must prove: 1. Reasonable time of cover and good faith effort
2. “It is immaterial that hindsight may later prove that the method of cover used was not the cheapest and most effective.”
- This remedy is-equivalent to B’s remedy to resell
- B has the choice to cover, BUT if B doesn’t cover, then he loses the ability to recover for lost profits that he would have mitigated by covering Breach by Seller
§2 - 713
Non-Delivery Market Price When B Learned of Breach
- The place to measure damages is the place of tender and the time used is the time B learned of the breach
- The market price is measured for goods that are of the same kind and in the same branch of trade, but they do not have to be identical to K goods Breach by Seller
§2 - 714
Breach of Warranty Value of Goods @ Acceptance
- Value of Goods if Warranted
+ Incidentals
+ Consequentials
_____________________________ TOTAL damages to Buyer
- It is not unusual for the cost of repair to exceed the original purchase price, so it would be unfair not to use the Cost of Repair measurement, because it would deprive B of the benefit of his benefit of its bargain - Warrantors raise liability if they breach their warranty Breach by Seller
§2 - 716
Specific Performance & Replevin •	May only be used when the goods are unique, and can include payment of price, damages, or other relief
•	Available after B makes a reasonable effort to cover or that an attempt would obviously be ineffective
- If B can cover for breach or money damages are easy to calculate and will compensate B, the court won’t use specific performance.
- The court will not grant specific performance for construction Ks or activities where it cannot oversee performance (never in personal employment cases) Breach by Seller
§2 - 718
Liquidation / Deposits •	Liquidated Damages are not meant to be Punitive, so excessively large liquidation is unenforceable by law
•	Parties can use liquidated damages when the proof of loss is difficult to determine
•	The point of liquidated damages has been lost b/c the ct will try to find out the actual damages, and if it is disproportionate to the liquidation total, the ct. will enforce their own totals. (the harder the calculation, the more likely it will be to be enforced) Breach by Buyer
§2 - 703
Seller's Remedies - B wrongfully rejects, revokes acceptance, fails to pay, or repudiates
- For the whole K, the S can:
a) withhold delivery of the goods
b) stop delivery by any bailee
c) proceed under 2-704
d) resell and recover damages (2-706)
e) recover damages for non acceptance (2-709)
f) cancel
•	“Money is fungible and cannot be traced” •	There cannot be consequential damages because there is no way for the seller to prove that he was going to use the money to do something specific with it
•	Sellers should be afforded the same remedies buyer are
•	Sellers can choose more than 1 of these options, depending on the individual case Ready to get started?