LAW 122 Lecture Notes - Expectation Damages, Punitive Damages, Specific Performance

9 views5 pages
Published on 19 Apr 2013
Course
Professor
Chapter 12 CONTRACTUAL REMEDIES
DAMAGES
Damages: is an award of money that is intended to cure a wrongful event, such as a
breach of contract
Plaintiff does not receive exact thing but monetary value of that thing
Reasons why courts award monetary damages for breach of contract
oThe courts of law historically did not have the power to compel a
defendant to do anything other than pay money
oContracts traditionally were seen as a commercial arrangement between
business people
oThird especially in the business world it would often be inconvenient to
award something other than monetary damages
EXPECTATION DAMAGES
Expectation damages: represent the monetary value of the benefit that the plaintiff
expected to receive under the contract
Expectation damages are forward looking because they intended to place the
plaintiff in the position that it expected to be in after the contract was properly
performed
Compensatory damages in tort law are backward looking because they are
intended to place the plaintiff I the position that It was in before the defendant
acted wrongfully
oBackward looking damages are easily justified, they allow the plaintiff to
recover the value of something such as a favorable reputation
oForward looking, allow the plaintiff to recover the value of something that
it never previously enjoyed by merely expected to receive under its
contract with the defendant
oExpectation damages therefore provide an assurance that if a promise is
not actually fulfilled, the innocent party will at least be able to recover the
monetary value of the promise
= -
Five issues:
Difficulty of calculation
Costs of cure or loss of value
Intangible losses
Remoteness
EXPECTATION
DAMAGES
Expected benefits
under the contract
Costs under the
contract
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in
Mitigation of damages
Difficulty of calculation
Costs of cure or loss of value
Most likely to do so if the plaintiff has a legitimate interest in having the work
done or if the plaintiff has actually already spent money curing the defendants
defective performance
Intangible losses
Intangible losses: is a loss that does not have any apparent economic value
Ex. anger frustration, disappointment when promises are broken
Historically the courts do not award damages for intangible losses
Recently however the courts have stated to recognize that “peace of mind” is one
of the things that a person may expect to receive under a contract
Damages can be awarded to plaintiff if it caused distress
Remoteness
Remote: if it would be unfair to hold the defendant legally responsible
A loss is not remote if the defendant either should have known or actually did
know that it was the sort of loss that might occur if the contract was breached
oFirst liability may be imposed if a reasonable person would have known
that the plaintiffs loss might result form a breach
oSecond, liability may be imposed if the defendant actually knew that the
plaintiffs loss might result from the breach
oVictoria laundry v. Newman industries
oRemoteness is a principle of fairness
oBefore entering into a contract, you should make sure that the other party
is aware of any unusual losses that you might suffer as a result of its
breach
oThe other party may demand a higher price or even refuse to enter into the
agreement, but if you do not draw attention to the possibility of an unusual
loss you will not be able to recover expectations damages if that loss
results
Mitigation of damages
Mitigation: occurs when the plaintiff takes steps to minimize the losses flowing
form the defendants breach
1. Lawyers sometimes say that there is a duty to mitigate the plaintiff is not
required to mitigate, failing to do so is a poor business decision
2. the plaintiff is responsible only for taking reasonable steps to mitigate a loss
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Damages: is an award of money that is intended to cure a wrongful event, such as a breach of contract. Plaintiff does not receive exact thing but monetary value of that thing. Expectation damages: represent the monetary value of the benefit that the plaintiff expected to receive under the contract. Expectation damages are forward looking because they intended to place the plaintiff in the position that it expected to be in after the contract was properly performed. Costs of cure or loss of value. Most likely to do so if the plaintiff has a legitimate interest in having the work done or if the plaintiff has actually already spent money curing the defendants defective performance. Intangible losses: is a loss that does not have any apparent economic value. Ex. anger frustration, disappointment when promises are broken. Historically the courts do not award damages for intangible losses.

Get OneClass Grade+

Unlimited access to all notes and study guides.

YearlyMost Popular
75% OFF
$9.98/m
Monthly
$39.98/m
Single doc
$39.98

or

You will be charged $119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.