Lucy v. Zehmer Case Brief and Expectation Damages

Flashcards covering key concepts related to the Lucy v. Zehmer case and expectation damages in Hawkins v. McGee.

What are the two main questions in Hawkins v. McGee analysis?

Is there a breach of the contract? If so, how do you calculate damages arising from the breach?

What is the purpose of calculating expectation damages in contract law?

To put the plaintiff in as good a position as they would have been if the defendant had kept the contract.

What should the measure of recovery be based on according to Williston's definitions?

What the defendant should have given the plaintiff, not what the plaintiff has given or expended.

How is the measure of the plaintiff's damages calculated in Hawkins v. McGee?

It is the difference between the value of a perfect hand (as promised) and the current value of the plaintiff's hand.

What is a general rule regarding the enforcement of contracts?

Contracts are enforced through monetary compensation, allowing the injured party to be put in a position as if the contract had been performed.

What was the problem of the day regarding expectation damages?

Buyer and Seller contract for 1,000 barrels of oil at $50 per barrel, but the Buyer refuses to proceed when oil is selling at $44 per barrel.

How much can the Seller recover if the Buyer refuses to go through with the transaction after the oil price drops?

The Seller can recover the difference between the contract price and the market price on the delivery date.