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  • 8/12/2019 Contracts Simplified Outline - Short Version

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    Contracts outline

    I. Offer & AcceptanceA. Intent to Contract

    1. Objective Theory of Contracts.a. mental intentionsof parties are irrelevant

    (i) though objective theory dominates subjective eements more freey considered

    b. the acts manifesting assent must be done either intentionallyor negligentlyc. the objective manifestations of intent of the party shoud be vie!ed from a "# vantage point

    (i) use the Reasonable Person Standard/Test$!hether a "# in position of # !oud concude that % had made a commitment

    . 'ubjective Intenta. if the other party has some ind of specialized knowledgethat !oud set off a reason as to !hy

    the objective method shoud not be used(i) it !oud not be fair to protect a party !ith objective intentif they aready had some

    sort of no!edge that gave them actua no!edge that the entire act !as not egitimate. Court has said that

    a. price disparity does not necessariy mean there is no intent to *b. just because a person is e+cited does not mean there !as no intent to *

    ,. The Offer1. intent (objective). terms (definite). communications-. Offers %istinguished from 'tatements that are not offers

    a. e+pressions of opinions & predictions(i) expressionofanopinionis not a promise and notanoffer

    $statements made by physicians / dr. not iabe in * for faiure to ive up to sisof coeagues (!oud be tort)

    $use "#'$oo for !ords of guarantee$oo at surrounding circumstances

    (ii) advertisementis notanoffer(genera rue)$if something is an obvious joe / not an offer$ads cataogs circuars / generay not offers$ads generay are inviting you to mae an offer to the person advertising$order form / mere notice & soicitation for offer / creates no po!er of

    acceptance in the recipientb. offers distinguished from #reiminary 0egotiations and #rice uotations

    (i) inquiryis not an offer$must distinguish b2t offers and invitationsto make an offer$use the "#'

    $oo at the language$oo to see if there are other offersbesides the #3s offer

    $if D is only selling !" thing #piece of property$ there canonly be !" contract

    (ii) price quoteis not an offer$generay invite an offer

    $can be if they have certain additional characteristics$use "#'

    4. Auctionsa. auctions are situations !here you can have offersandacceptancesb. there are t%otypes of auctions

    (i) auction %ith reserve5 seer sets a price that is the minimum he !i accept(ii) auction %ithout reserve5 there is no minimum price set

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    c. !here parties agree to agree ater as to an essentia term(i) traditiona vie!5 agreeing to ater agree maes a * void / no * is formed(ii) modern vie!5 agreeing to ater agree is O* / depends on jurisdiction

    . The Acceptance1. Bniatera & ,iatera *

    a. .nilateral/ ony one party maes a promise and so it is the party subject to ega obigation(i) an accepting an offer by performing

    Example: A says to , 9If you run the ,oston ;arathon and finish I !i pay you1DDD.:A has ased , to perform but not for a commitment to perform. A has

    made a unilateral contract. If , does accept it is by actually performing but at notimeis , actuay bound to perform. If , does perform there is thena contract.

    (ii) no commitment is sought from the performer / ony the performance itsef / noperformance E doesn3t have to get paid

    b. -ilateral/ a * !here both parties have made promises / both subject to ega obigationsExample5 A says to , 9If you promise to run in the ;arathon and finish the race I promise to pay

    you 1DDD.: A3s offer re7uests to , to mae a commitment. If , maes thepromise2commitment then both parties are then bound. A biatera contract arises !hen , maes thereturn promise.

    c. Reverse.nilateral/ the offeree maes the ony promiseExample5 I have my house insured and I pay 'tate Farm a ot of money every year asing for their

    promiseto pay if my house burns do!n. I have made the offer because I have purchasedthe Insurance / I have acted done a behavior / given money and !hat I !ant in return for

    that money is apromisethat my house !i be taen care of in case of an accident.$I have made no promise to 'tate Farm I have acted and !hat I !ant in e+changeis a promise form 'tate Farm that if my house burns do!n they are going to pay

    for it$In this case the * is made if the other party maes the promise to pay if my

    house burns do!n. *no!edge of an Offer

    a. in genera to accept an offer must kno%about the offer must intend to accept the offer. Objectivity2Objective Intent

    a. oo at !hether it oos ie offeree is accepting an offer regardless of his in%ard motivation-. ,asic Idea of Acceptance

    a. definition5 a vountary act of the offeree !hen offeree e+ercises po!er given to them by offeror

    b. !hen trying to decipher 9did he accept8:focus on the ob*ective/ the out%ard behavior4. =ho Can Accept an Offer8

    a. uness an offer is directed to the %orld at largeit may ony be accepted by the person to!hom it is directed

    6. Acceptance by 'ience and Conduct

    a. express )/ an offer acceptance a terms speed outa rea *b. implied in fact )/ promise from conduct terms not e+pressy aid out but impied

    from facts in situationa rea *c. implied in la%/ 97uaisi$: / has to be some type of benefit of services and it hasto be

    acceptednota rea * / butthere is an obigation by a!(i) the court in the interest of justice and fairness says that in lawa * !as made /

    someone has performed services for someoned. sience in a biatera * / normay you need to comm. Acceptance b2c sience does not E *

    e+ception5 the conduct of parties / someone !ho is sient may have a duty to spea (tonot accept) if their sience is miseading due to past conduct

    F. =hen ;ay An Offer Gooing to a Bniatera * 0o Gonger ,e "evoed81. #artia #erformance

    a. cassica vie!5 in a BC offer may be revoed at any time before complete performanceof actre7uested by offerorb. modern 2prevaiing vie!5 in BC once the offeree begins to perform$offer becomes irrevocabe

    (i) e+ception5 mere preparation is not enough ony if offeree actually starts to perform. 9;aibo+ "ue: / purpose is to no! !hen the offeree made the return promise so offeror can3t revoe

    a. generay acceptance effective !hen sentregardess of !hether it reaches offeror

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    (i) e+ceptions appy5 (do not apply if earlier re*ection arrives before later acceptance)$offeror provides other!ise (master of the offer)@$acceptance is not made in manner & by medium invited by offeror@ or$e+ception to acceptance under an option )(effective upon receipt by offeror)

    b. generay revocationis effective!hen receivedby offereec. generay re*ectionor counterofferis effective!hen receivedby offeror

    (i) instead an acceptance sent after an other%ise effective re*ection/counter offer5(a) operates ony as a counter$offer if offeror receives it afterthe earier sent

    rejection or counter offer@ A0%

    (b) operates as an acceptance if offeror receives it beforethe earier$sentrejection or counter$offer

    d.Acceptance onAns!er 2Revocation (orRejection) onReceipte. #arties in the #resence of One Another

    (i) acceptance is ony effective !hen I hear it unlessits my o!n faut for not hearing itf. teephone treated ie mai

    H. Termination of a "evocabe Offer & Acceptance arying from Offer1. Cassica ie! on Time Frames and "easonabe Time

    . 'econd ie! on Time Frames and "easonabe Time/ 'aid that offeror can choose to acceptsomeone3s ater tendering of an offer by !aving the time restrainta. treats time not as part of the formation but as a condition to the acceptance

    . Third ie! on Time Frames and "easonabe time $if an acceptance is ater but fas !2i a reasonabletimethen burden is bac on offeror to say they absoutey do not agree to that andif the offeror

    does not then they are bound to uphod the * !ith the buyer-. %eath of an Offeror and Gegay Incapacitated Offerors

    a. generay po%er to acceptterminates !hen offeror diesor becomes legally incapacitated4. "evocation

    a. revocable offermay be revoed at any time prior to acceptance(i) most obvious !ay for offeror to terminate po!er of acceptance

    6. Acceptance arying from Offera. the acceptance must exactly mirror(even triviay) the offer/ anything ese E counteroffer

    J. Option Contracts SYNONYMOUS !"# !RR$%O&A'($ O))$RS1. !hen consideration has been paid for the purpose of hoding a * open it is an Option *

    . Option *s must be supported by consideration

    a. once you have option * supported by considerationirrevocable

    II. ConsiderationA. =hat Is Consideration8$something of value given in bargainedforexchange !hen parties intende+change

    1. The Three Parts of Considerationa. the promiseb. either promisee suffers a detriment O" promisor incurs a benefitc. the first parts must be reated by a bargainedforexchange(offeror maes promise so other

    party !i suffer detriment or he !i have benefit). ;otive and #ast consideration are both not considerationfor a *. Conditions to a Hift are not consideration

    a. no bargained$for$e+change in a gift-. ;i+ of ,argain and Hift

    a. seing something at a discount for a friend even though the motive is the friendship the court!i enforce the * because there is a bargain invoved

    4. 'urrendering of an Invaid Caima. Cassic vie!5 if you3re not really giving anything 0 no considerationb. ;odern vie!5 if someone in good faith beieves they have a caim on someone the

    surrendering of that caim !i be deemed consideration,. #re$+isting %uty "ue / appies to formationand modification of *s

    1. Pre"xisting Duty Rule/ an agreement modifying a * is not supported by consideration &+1a. one of the parties does2promises to do something he is aready egay obigated to do@ O"

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    b. one of the parties refrains2promises to refrain from doing something not even egay priv. to do. #ast Consideration Is 0ot 'upport for a 0e! #romise

    a. !ays to get around this5(i) rescind od * and mae ne! *(ii) mae more detriment(iii) ;odern vie!5 even !2o ne! * or ne! detriment can find a * !2 a ne! promise to bebinding !ith an .nanticipated Circumstance

    1. parties vountariy agree to the modification. promise modifying origina * made before * is fuy performed on either side

    . underying circumstances that prompted change !ere unanticipatedby parties-. the modification is fair and e7uitabe (a itte broad though)

    . Accord & 'atisfactiona. 2ccordis an offer to give or accept a stipuated performance in the future in satisfaction or

    discharge of the obigor3s e+isting duty pus an acceptance of that offer(i) the performance of this stipuated performance is the satisfaction(ii) offer of accord must make it clear that the offeror is seeking complete discharge(iii) mustbe supported by consideration

    b. Three 3uestions to ask about 2ccord 4 Satisfaction(i) have the parties aready gone through process of offer2acceptance8(ii) has there been satisfaction8 (e+5 has the chec been cashed8)

    (iii) !as the accord2satisfaction supported by consideration8Kes E binding *

    -. Consideration in ,iatera *s and ;utuaity of Obigationa. in a biatera (promises going both !ays) mustbe detriment2benefit supporting each promise

    (i) once there is promises going both !ays there is enforceabiity going both !ays(ii) in a biatera * if you promise me you3re going to run the marathon I can enforce

    your promise to run it and you can enforce me paying you but onlyif there isconsideration going both %ays

    (iii) in the biatera the consideration has to be going both !ays but the considerationdoes not have to be-' out there it can be i*pliednot e+pressand u can

    look at thegood ,ait require*entto determine if it %as there

    b. ;utuaity of Obigation(i) better thought of as mutuaity of consideration(ii) in a uniatera * there is no mutuality of obligationb2c offeree has not been bound

    to do anything@ even if he starts to perform he does not have to compete the performance(iii) biatera * is void !2o mutuaity of obigation

    c. Termination at =i *s

    (i) Cassica vie!5 !hen one of the considerations2detriments are Tat= no * formed

    (ii) ;odern vie!5 !hen one of the considerations2detriments are Tat=if there is areasonabe amount of notice in a termination at !i then it is fair

    d. Covenants not to Compete(i) !here there is a C0TC there shoud be a bargainedforexchange(ii) must oo at consideration / !hat did the empoyee receive8 The empoyer8

    e. Iusory #romise(i) a real promiseimits one3s future options compared to one3s options before promise(ii) illusory promisedoes not imit one3s future options / is an apparent commitment

    that actuay eaves a 9free !ay out:(iii) ;odern vie!5 not to oo at iusory promises too cosey / more concerned !ith

    !hat happens !hen one party doesn3t !ant to foo! through and theniusorypromises can be used against them

    f. Consideration 'uppied by Impied #romises(i) an implied promiseis a !ay to get around an illusory promiseby incuding into the

    agreement that other!ise seems iusory the re7uirement of good faith orreasonabeness

    g. Conditiona #romise(i) a promise that the ony re7uires the promise to perform if a specific condition occurs

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    (i) not illusoryand constitutes valid considerationb2c the promisor has imited hisfuture option b2c if the condition does occur he hasto perform

    h. "e7uirements *s and Output *s(i) in a typica requirements contractbuyer expressly agreesto buy a of his

    re7uirements of a stated good from the seer !ho agrees to se that amount tothe buyer

    (ii) output5 seer agrees to se a of his output of a certain item to buyer and buyeragrees to but that output from the seer

    (i) in the re7uirement * the considerationis in the surrender of the buyer3s priviege to

    purchase ese!here

    III. ;ora Obigation and ConsiderationA. =e ta about ;ora Obigation as a substitute for consideration/ ho!ever most courts are going to hod

    that moral obligation is not consideration,. Cassic (minority) ie!5 a promised based on;.O. or past consideration is unenforceableunlessit is5

    1. a promise to pay a prior debt. promissory restitution5 promise to pay for a benefit previousy received. ega obigation is discharged by a! (e+5 statute of imitations) and yet the person promise to pay-. a promise to pay an obigation that !as voidabe due to fraud and yet the person promises to pay4. a promise that is ora athough normay unenforceabe may be deemed enforceabe

    C. ;odern ie!5 a promise based on ;.O. is enforceable

    1. if the promise is based on material benefitthat !as previously conferredby the promise upon thepromise it is enforceabe

    I. #romissory stoppe / designed to assis the party !ho reliedon the promise

    A. LMD of the "estatement"lements of Promissory "stoppel1. Kou need a promise. the promisor shoud reasonaby e+pect to induce action or forbearance. the action has to be of a definite2substantia character-. the promise must be !hat actuay induces the action4. if the promise is not enforced there !oud be injustice

    ,. #art of the "estatement$a charitabe donation (or marriage agreement) is binding !2o proof that the promise induced action or

    forbearance (N- to part 1)C. =hat LMD Appies to

    1. the present tendency is to use the doctrine as a substitute for consideration in cases of gratuitouspromises in just about any case !here a of the eements for #.. are present

    . donations are an addition to promissory estoppe for pubic poicy reasons%. ;odern ie! of #..

    1. the incusion of part to part 1 of LMD@ and. N to part 1 is not incuded

    C. Cassic ie! of #.. is just part 1 of LMD

    . Conditions #erformance and ,reach ('ee Jandout M2> / intro to e+press2constructive conditions)$condition defined1an act or an event other than a apse of time !hich uness the condition is e+cused must occur before

    the duty to perform an act arisesA. The 0ature and ffect of +press Conditions The Time Cassification of Conditions

    1. express condition/ an e+press state*ent in te .!hich provides that either51. a party to the * does not have a duty to perform unlesssome even or state of the !ord

    occurs2fais O". if some event or state of the !ord occurs or fais to occur the obigation of a party to perform

    one or more of his duties under the * is suspended or terminated. i, /ou ave an e+press condition it *ust be strictl/ per,or*ed 0 do e+actl/ wat it sa/s

    (Audette v.Lunion). constructive condition/ a egaese (a! jargon) / ho! the court !i oo at responsibiities of

    the parties and figure out if someone has breached or not

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    1.if there is no e+press condition this is ho! the courts determine ho! the parties have to performand !hat they have to perform

    . not a spelled out1e+press condition 0 a condition i*plied b/ law to do justice substantialco*pliance

    . conditions precedent to performance/ has to happen before1. the idea of something that occurs before the duty to perform can arisenotcondition to

    forminga *-. conditions concurrent to performance/ has to happen at the same time

    1. neither party is obiged to perform uness and unti the other party tenders performance. e+5 A contracts to se car to , for 1Dg. * states that both price and car are to be e+changed onPuy 1. Tender of each performance by each party is an i*plied condition concurrent to

    per,or*ance b/ te oterparty3s obigation to perform / if , fais to tender price on Pu1 A3s duty to deiver car does not arise and vice versa

    4. conditions subsequent to performance/ has to happen after (rare bi

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    6. if the first party has not substantially performed 0 they have materially breached and if they havematerially breached the other party has t!o choices1) cance and get out of * and get tota damages@ O") et you continue !ith the * and sue for the partia damages

    %. Gess Than 'ubstantia #erformance5 uasi Contractua "ecovery1. rue5 if you3re the breaching party and if you conferred a benefit onto the nonbreaching party you are

    entited to the vaue of that benefit and you are aso going to be re7uired to pay the tota damagesthat the breach has caused you may not come out in the bac but you get some ind of offset(Lancellotti)

    a. !hatever the vaue is that the non$breaching party has because you performed that is !hat you!i be entited to

    . "ecovery ,y a #arty in %efaut5 Divisibility &ndependent Promises5 and Separate Contracts1. Divisibility/ the court actuay taes a contract and divides it to mae it more fair for both parties

    F. =rongfu #revention and 0on$Cooperation1. you cannot hinder or delay the first promise from being performed

    a. if you are the second party and your promise does not have to happen unti the first promise toperform happens and you stop the first promise from happening you !i not be off the

    hoo you cannot do that

    . you have to et a of these promises happen in good faitha. you cannot !rongfuy prevent the first promise from happening and then be e+cused from

    performing the second promiseH. =aiver stoppe and ection

    1. if parties do not put dates in a contract then time is not of the essence and performance has to happen ina reasonabe time. !hat is time is of the essence8

    a. it means that both of the parties in the * have made an agreement as to !hen they are going toperform and if they don3t perform at that time there are going to be conse7uences and

    those conse7uences are going to be enforced. ho! to reinstatetime being of the essence

    1. you have to be cear that you !ant to reinstate time of the essence

    . it has to be reasonabe / has to give the other party a reasonabe amount of time to perform. ,aiver of Conditions

    a. !hen !e ta about !aiver !e have the party for !hom the condition is meant to benefitwaiving it and if the condition is meant to benefit you you can !aive anything you !ant /

    and if you do it before the condition is due it is in fact caed a !aiver$any condition can be %aived as long as it %as to be in 6.R benefit and it had yet

    to occur

    b. once you have %aivedit can you reinstateit881. if there is a condition that you have !aived and !ant to reinstate you can ony reinstateit if it is immaterialyou cannot try to go bac and reinstate something the court !oud

    find to be materialc. time is of the essence/ materia or immateria8 Can it be !aived8

    $court !i interpret that narro!y$court !i rarey find it to be materia / but it is possibe

    -. "lections the idea of electionis very cosey reated to breaching amaterial conditionthe party!ho is not breaching has the po!er to do thata. if there has been an immaterial breach$ parties have toelectto continue and sue for damagesb. once you have elected after the failureyou can no onger tae it bacQ

    4. "stoppel/ !rongfu preventiona. if you have a party that conceas a fact and the other party reies on it to their injury then the

    party that has done the misrepresentation can3t enforce something based on thatmisinterpretation

    J. "eief from Forfeiture

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    1. +orfeiture$ merey another !ay of e+cusing a condition that has to happena. more of an e7uitabe remedy !here the ct. may decide to e+cuse a condition b2c of an unfair

    resut that !oud occur if they didn3t$the court !i say yes there !as a condition but !e are going to e+cuse that condition

    b2c !e thin it !oud be ine7uitabe / a bad resut / if !e did not e+cuse thecondition

    $even if it is agreed upon !y thepartiesthe court may sti find it to be unfairb. common$a! rue5 a condition may be excused if its requirement may cause

    extreme forfeiture ($urger %ing)

    I. Conditions of 'atisfaction1. &estern 'ills v. (fau $ ct. divided the idea of satisfaction into separate categories5

    $sub*ective standard/ if something is in good taste or judgment the promisor is the one !hocan judge if they are satisfied$this is a narro! category

    $ob*ective standard/ invoving utiity fitness and vaue$!oud a "# consider the finished product to be satisfactory

    P. #rospective Faiure of Condition and ,reach by "epudiation$you have a party that says they !ont do it or thin they !ont do it before they even have to do it$b2c it is an anticipatory breachyou do not have to sit around and due nothing until the date comes

    $Court said # coud5

    (1) sue immediatey or() !ait unti the time !hen the act !as to be done sti hoding it as prospectivey

    binding for the e+ercise of this option !hich may be advantageous to theinnocent party and cannot be prejudicia to the !rongdoer

    $if you have a good reason to beieve the other partying !ont be performing51. re7uired to A'* FO" A''B"A0C / 9are you sti going toS:

    a. if you3re under the BCC (has to be sae of goods) and you as for assurances5+15 Kou say 9are going to se me that car: and he says 90o:

    $code ao!s you to immediately treat it as an 2nticipatory -reach+5 he says Kes I am

    $you must be ready !iing and abe to buy that car on the cosing date

    $if he then does not go through !ith itCA0 'B TJ0 for damages

    b. under CO;;O0 GA=$+ 15 you say are you going to sho! up for !or on ?21 and she says K'5

    $you have to be ready !iing and abe to have a job for her and be readyto pay her b2c you have ased for assurances and you have gotten

    them $+ 5 if in response to the 7uestion of assurance and she says 0O5$!T 2! 27-7$I can suspend my performance $ I do not have to be ready !iing and

    abe to perform on that day b2c you3ve been tod by her she is notgoing to sho!

    $if she sho!s up any !ay and you3re not ready !iing and abeto perform the court !i no! give ; a reasonabe time

    in !hich to perform

    $%hen you8re told ! all you can do is suspend your performancesbut you still have to be %aiting *ust in case

    1. 2nticipatory -reach$the repudiation has to be anguage used !hich under a fair reading is interpreted that he !i

    0OT sho!CGA" stmt$!hen !e have an A, there are a fe! things you can do5

    1. sue for material breach/ b2c !hen !e have something that meets that substantiapositive statement the court !i find that there is a breach most common

    scenario is an immediate suit $$$$aso have other options(not re7uired)$$$$. you can urge them to perform and if they still do not you can then sue

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    . you can %ait unti the cosing date but I better be ooing for a ne! buyer at that timebecause if you don3t and you3re trying to argue that you have undergone damages

    the courts !i say you messed upI. nforcement "emedies

    A. %amages1. Henera #rincipes

    a. purpose of * damages is to you are putting the person !ho did not breacin a position,orward!here they !oud have been had the other party not breached

    b. reasonably foreseeable$ !hen t!o parties enter a * the breaching party is ony iabe for

    damages that are foreseeabe ('adley v. $axendale)$courts !i a!ard genera damages that are reasonabl/ ,oreseeable$does !T include5 attorney fees and trave e+penses ()ader v. *tephenson)

    c. efficient breach$ purposey breach if there is a benefit to the one breaching even after payingthe damages to the damaged party

    d. general damages(+ru!er v. *,) -ews Co.) $ the damages that are reasonaby foreseeabenaturay arising from the breach that the parties considered in entering into the *

    general damagescourt is a!ays going to start in a!arding general damagese. reliance/ e+penditures made in relianceof %3s promisef. !hen a!arding damages courts !i first go to general damagesand second they !i go to

    reliance/ so as to at east reieve the damaged party from being 9in the hoeg. %amages Overvie! Jandout 1D26

    $'arket 9alue/ the usua standard !e may oo to ta about the vauation$the sum of money that a !iing buyer !oud pay to a !iing seer

    $ho! to proveit5 bring in evidencepubications (*,,) e+pert opinions$in the case of goods $ have to oo at the purpose of the actua *

    $Duty to 'itigate Damages/ duty to get off your butt and do something if you are non$breaching party$not an affirmative duty to get up and do something / more ie an absence of a right to recovery

    for a the damages that have accrued$burden is on the breaching party to prove the faiure of the non$breaching party to do that

    . mpoyment Contracts$!hen an empoyee is !rongfuy discharged basicay $ empoyee entited to the saary that

    !oud have been payabe during the remainder of the term reduced by the income that theempoyee has earned !i earn or coud earn !2 reasonabe diigence during that

    une+pired term$if empoyee doesget another job it !i reduce their damages from the empoyer !ho !rongfuyfired them$!hat happens if an empoyee breached the *8

    $empoyer3s recovery is the additiona maret cost of getting substitute for the ost emp.. 'aes of Hoods or "eaty

    $there is the od "nglishrue and the modern 2mericanrue$"nglish Rule5 buyer cannot recover from the oss of the bargain a you can get is your

    costs of the tite the do!n payment e+penses$if the seer ne! / bad faith / then the seer might be iabe for more

    $2merican Rule5 gaining in popuarity / buyer is entited to get their oss of theirdamage / to put them in the position they !oud be in if the contract had not

    been breached$there is a spit among the states b2t ngish rue and Americantrend is 2merican rule$purchase money mortgage/ !hen someone !ho is seing you !hatever you buy is ending

    you the money to buy it$court inonovan v. $achstadtsaid if you coud sti buy the same amount of house !ith the

    same amount of money ,BT if it is going to cost you more if you are not going to beabe to get as much house !ith this origina amount of money then you have suffereddamage

    $!hen you have damages in rea estate first you !i ta aboutspecific performance : it !ia!ays be the first remedy a buyer sees b2c they !ant ct. to compe the sae of and to go

    through

  • 8/12/2019 Contracts Simplified Outline - Short Version

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    $!hen cannot havespecific performance the damages of the breach must be cacuated-. Construction Contracts

    $the point is to appy the same general damagesdoctrine and seeing ho! it pays out in each ofthese different contractua reationships$contractor remedies if the o!ner breaches5

    $if contractor did no !or the contractor is entited to the profit they !oud havemade on that job$cacuate5 !hatever * price is ;I0B' cost to perform

    $if there !as a delaycaused by o!ner3s breach

    $contractor is entited to the additional costs$if the o!ner breaches after the contractor had aready started partia performance

    $contractor !i get the total unpaid price/ !hatever is eft to be paidon the * ;I0B' !hat it !oud have cost to finish the project

    $o!ner remedies if contractor breaches5$athough there is a ot of criticism that the a!ard is very generous / o!ner is

    generay entited to damages needed to fi+ !hat is !rong4. #unitive %amages