1. Contract Damages and Remedies
Common Law (“Legal”) Damages
Restitution (return of some thing given to other party with no right to retain it).
Reliance (costs/efforts expended in the belief that the contract will be honored).
Expectation – this is often the best to receive – it is getting the benefit of one’s bargain in full – two forms:
General – damages that naturally flow from breach like loss of great bargain or profit on the contract.
Special – not necessarily naturally flowing, like loss on contract with third party (dependent on the primary).
Note: these are types, or rules, for common law or legal damages. The “goal” is to put non-breaching party in as good a position as if the contract were fully performed.
Contract law does not allow windfall profit – compensation only.
Contract law also does not like punitive damages – compensation only.
If a party chooses one form of damage to assert throughout proceedings, s/he/it may have “elected” for that and can’t later change tack to argue another form of damage (ask for any appropriate).
U.C.C. forms of damage relatively but not completely similar…compare…
The goal is to ensure full benefit of bargain – it is not a “rule.”
Courts have great discretion to craft remedy – could be lost Value of a good bargain, could be cost to fix/replace improper construction or service, could be, if real property, the loss of value as promised and as improved (which avoids economic waste).
Loss on third party contract example: party orders widgets to put in a machine, supplier breaches, party loses a contract with a third party for the machine, due to lack of (quality, timeliness, quantity) widgets.
© 2018 Paul J. Carrier, Paul J Carrier, LLC Blue – Category Recognition; White – Specific Category; Yellow – “Black Letter” Rules (to be memorized); Green – Main Factual Issues – Analysis; Red – Upper-Level, Integrated Comprehension