Remedies Notes

Remedies

I. Damages

A. Compensatory Damages

• These are the normal measure of recovery in breach of contract cases, directly related to actual damages.
• Sometimes called expectation damages because they aim to put the plaintiff in the position they expected to be in had the contract been completed.
• Calculation Formula: Market Price - Contract Price = Damages

B. Nominal Damages

• A token sum (often $1) granted to a plaintiff when no actual damage was suffered.

C. Punitive Damages

• Damages designed to punish the defendant. Uncommon in contract cases.

II. Other Remedies Besides Ordinary Damages

A. Rescission

• A suit to undo the contract and place each party in their original positions.

B. Specific Performance

• A suit requiring exactly the performance specified in the contract.
  • Applies to all real estate contracts.
  • Applies to any contract with a unique subject matter.
  • Does not apply to personal services. However:
    • An injunction can be obtained to prevent a party from performing personal services for another entity, effectively enforcing the original contract.

C. Reformation

• A suit to change or modify the terms of the contract.
• Requires a valid reason for the modification.

D. Anticipatory Breach - UCC contract remedy

• Notification by a party that they will not perform the contract.
• The non-breaching party has several options:
  1. Sue immediately.
  2. Wait and sue if the breach occurs at the time of performance.
     • If this option is chosen, the breaching party can retract their repudiation and reinstate their rights.
  3. Purchase substitute goods and sue for any extra costs.

III. Mitigation of Damages

• A rule requiring a plaintiff to have done whatever was reasonable to minimize the damage caused by the defendant.
• Rule relating to mitigation of damages for breach of employment contracts:
  • An employee who is the victim of an unjust breach of employment contract only has to take "comparable work" in their attempt to mitigate their damages.