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Postby LSL » Fri Apr 26, 2013 11:47 am

Last edited by LSL on Mon Apr 29, 2013 10:40 pm, edited 2 times in total.

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Re: 2 Contract Exam Questions (Really need help!)

Postby dietcoke0 » Fri Apr 26, 2013 1:25 pm

Liquidated is pretty much just the name for money damages awarded

Expectation is what the non-breaching party would have gotten if contract went through (so if was going to buy a car, and sell it to a third party, you would get the profits (Buy from 1000, Sell for 1500, you would get 500, not 1,500) need a certain amount of certainty (likely to 500 if you had a buyer lined up, not so much if you are just guessing you can get $1,500)

Reliance is used to get the non-breaching party back to zero, (where he was before contract was made) and can include restitution measures. If we were going to buy something together, and I spend money for something (say permits, other items needed for this widget) then you would pay me whatever I spent.

Restitution is to get the breaching party back to 0. If he collected money, and breach, Contract Law will not allow him to profit from this, and he will need to pay whatever he earned on the breach.

Consequential (eh, kinda forget if this is accurate) is economic losses that were caused by the breach. So lets say your mill breaks down, and you order a new part. I send it, but screw up, and send to wrong Zip code. It takes 5 days instead of 2 days. Should I have to pay those 3 days for the delayed part? Depends if it was forseeable and in the terms. If I think, oh, this guy just wants an extra, I'll just send it ground, then maybe not, since not foreseeable. If it's in the terms, or you tell me that your mill is broke, and you absolutely need it, probably I would have to pay some.

I forget Incidential, trying to block out my contracts out of my mind.

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Re: 2 Contract Exam Questions (Really need help!)

Postby lukertin » Sat Apr 27, 2013 3:11 am

LSL wrote:Hey all,

1st exam in the next few days. I REALLY could use help with two things:

1) Does anyone have any good formulas for calculating damages in contracts? Specifically, Expectation, Consequential, Incidental, Reliance, Restitution, and Liquidated damages? For some reason I am really struggling with finding good, straightforward formulas on how to calculate these.

Identifying which the correct legal basis for remedy is more important than concerning yourself with math problems. Once you identify the legal basis for remedy, the formula should flow naturally.

Generally speaking the basic formula is
(Price of K + cost to nonbreaching party to cover the breach - cost nonbreaching party would have incurred on the K)

2)This is such a newb question, but what is the best way to structure my rule sections? Obviously, for Contracts, you'd be using the Restatement and UCC (or whichever is relevant), but do you also put relevant caselaw in your rule section? If not, where would you recommend putting relevant caselaw rules?

If there is a relevant caselaw which gives a rule different from that of the Restatement or UCC, or gives a rule that is not addressed by the Restatement or UCC (an example might be suing for specific performance on a contract to sell land where there is no written memo of the sale), you should include it. Otherwise it isn't exactly necessary, since you'll probably use the case in your analysis to draw analogies to the facts of that case.

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