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I was reading the contracts E&E today while at the gym, and there was something about their damages formulation that threw me off. Normally, I would chalk this up to the E&E being wrong, but our professor this semester never taught contracts before, so I'm not confident that I know the standard measure very well.

Now, I don't want to infringe on Aspen's copyright, so I'm going to vary up the fact pattern a little.

hypo wrote:Wakeboard loves anal stimulation, so he contracts with Paratactical for Para to build him a custom set of extra large, studded, ebony anal beads. Para quoted him a price of $1,500 for the anal beads and requires a $150 down payment, which Wake pays. Para spends $200 on ebony and begins shaping and polishing them, but has not yet bought the carpet tacks she will need for the beads, which cost $50 on the market.

A week later, Wake was savagely taken in the rear by a horse after answering "get fucked by a horse" in the Peas/Para poll on St. Tristan's Day, when all TLS poll answers come literally true. The Doctor forbade Wake from any such adventures, and ever conscious of his health, repudiated the contract with Para. Para checks scrap prices for ebony on the spot market and finds she can offload the scrap ebony for $5. What are her damages?

Is this the right way to figure it?
Value of K: $1,500
- Para's Direct Costs: $250
Para's Expectation Interest: $1,250

+ Costs Incurred: $200 ($1,450)
- Deposit Paid: $150 ($1,300)
- Cost Avoided: $50 ($1,250)
- Scrap Value: $5 ($1,245)
Damages: $1,245

The E&E Did all the same things, except they didn't subtract the $50 for the cost avoided, coming up with a figure of $1,295. The way I learned standard measure is Value of K + Incidental and Consequential - (Costs Avoided + Offsets)

So help a brotha out. What am I missing? Or is the E&E wrong?


PS. I know the hypo might earn me a time out, but let me get some answers first before you edit it out?

TTH wrote:I was reading the contracts E&E today while at the gym, and there was something about their damages formulation that threw me off. Normally, I would chalk this up to the E&E being wrong, but our professor this semester never taught contracts before, so I'm not confident that I know the standard measure very well.

Now, I don't want to infringe on Aspen's copyright, so I'm going to vary up the fact pattern a little.

hypo wrote:Wakeboard loves anal stimulation, so he contracts with Paratactical for Para to build him a custom set of extra large, studded, ebony anal beads. Para quoted him a price of $1,500 for the anal beads and requires a $150 down payment, which Wake pays. Para spends $200 on ebony and begins shaping and polishing them, but has not yet bought the carpet tacks she will need for the beads, which cost $50 on the market.

A week later, Wake was savagely taken in the rear by a horse after answering "get fucked by a horse" in the Peas/Para poll on St. Tristan's Day, when all TLS poll answers come literally true. The Doctor forbade Wake from any such adventures, and ever conscious of his health, repudiated the contract with Para. Para checks scrap prices for ebony on the spot market and finds she can offload the scrap ebony for $5. What are her damages?

Is this the right way to figure it?
Value of K: $1,500
- Para's Direct Costs: $250
Para's Expectation Interest: $1,250

+ Costs Incurred: $200 ($1,450)
- Deposit Paid: $150 ($1,300)
- Cost Avoided: $50 ($1,250)
- Scrap Value: $5 ($1,245)
Damages: $1,245

The E&E Did all the same things, except they didn't subtract the $50 for the cost avoided, coming up with a figure of $1,295. The way I learned standard measure is Value of K + Incidental and Consequential - (Costs Avoided + Offsets)

So help a brotha out. What am I missing? Or is the E&E wrong?


PS. I know the hypo might earn me a time out, but let me get some answers first before you edit it out?

If para didn't buy the tacks yet, I don't see why it would be considered a direct cost. It is not a cost at all. I don't think it should be figured in.

jne381 wrote:

TTH wrote:I was reading the contracts E&E today while at the gym, and there was something about their damages formulation that threw me off. Normally, I would chalk this up to the E&E being wrong, but our professor this semester never taught contracts before, so I'm not confident that I know the standard measure very well.

Now, I don't want to infringe on Aspen's copyright, so I'm going to vary up the fact pattern a little.

hypo wrote:Wakeboard loves anal stimulation, so he contracts with Paratactical for Para to build him a custom set of extra large, studded, ebony anal beads. Para quoted him a price of $1,500 for the anal beads and requires a $150 down payment, which Wake pays. Para spends $200 on ebony and begins shaping and polishing them, but has not yet bought the carpet tacks she will need for the beads, which cost $50 on the market.

A week later, Wake was savagely taken in the rear by a horse after answering "get fucked by a horse" in the Peas/Para poll on St. Tristan's Day, when all TLS poll answers come literally true. The Doctor forbade Wake from any such adventures, and ever conscious of his health, repudiated the contract with Para. Para checks scrap prices for ebony on the spot market and finds she can offload the scrap ebony for $5. What are her damages?

Is this the right way to figure it?
Value of K: $1,500
- Para's Direct Costs: $250
Para's Expectation Interest: $1,250

+ Costs Incurred: $200 ($1,450)
- Deposit Paid: $150 ($1,300)
- Cost Avoided: $50 ($1,250)
- Scrap Value: $5 ($1,245)
Damages: $1,245

The E&E Did all the same things, except they didn't subtract the $50 for the cost avoided, coming up with a figure of $1,295. The way I learned standard measure is Value of K + Incidental and Consequential - (Costs Avoided + Offsets)

So help a brotha out. What am I missing? Or is the E&E wrong?


PS. I know the hypo might earn me a time out, but let me get some answers first before you edit it out?

If para didn't buy the tacks yet, I don't see why it would be considered a direct cost. It is not a cost at all. I don't think it should be figured in.

Wouldn't that be like saying "you just breached a K with me for $5000, that would normally cost me $4000 to complete, but since i haven't purchased the materials I can recover 5000 rather than 1000"?

Methinks TTH is right.

Yeah, I ran his numbers and saw how it was figured, and I got the same answer as TTH.

I don't remember a goddamn thing from K but I love the hypo

TTH wrote:I was reading the contracts E&E today while at the gym, and there was something about their damages formulation that threw me off. Normally, I would chalk this up to the E&E being wrong, but our professor this semester never taught contracts before, so I'm not confident that I know the standard measure very well.

Now, I don't want to infringe on Aspen's copyright, so I'm going to vary up the fact pattern a little.

hypo wrote:Wakeboard loves anal stimulation, so he contracts with Paratactical for Para to build him a custom set of extra large, studded, ebony anal beads. Para quoted him a price of $1,500 for the anal beads and requires a $150 down payment, which Wake pays. Para spends $200 on ebony and begins shaping and polishing them, but has not yet bought the carpet tacks she will need for the beads, which cost $50 on the market.

A week later, Wake was savagely taken in the rear by a horse after answering "get fucked by a horse" in the Peas/Para poll on St. Tristan's Day, when all TLS poll answers come literally true. The Doctor forbade Wake from any such adventures, and ever conscious of his health, repudiated the contract with Para. Para checks scrap prices for ebony on the spot market and finds she can offload the scrap ebony for $5. What are her damages?

Is this the right way to figure it?
Value of K: $1,500
- Para's Direct Costs: $250
Para's Expectation Interest: $1,250

+ Costs Incurred: $200 ($1,450)
- Deposit Paid: $150 ($1,300)
- Cost Avoided: $50 ($1,250)
- Scrap Value: $5 ($1,245)
Damages: $1,245

The E&E Did all the same things, except they didn't subtract the $50 for the cost avoided, coming up with a figure of $1,295. The way I learned standard measure is Value of K + Incidental and Consequential - (Costs Avoided + Offsets)

So help a brotha out. What am I missing? Or is the E&E wrong?


PS. I know the hypo might earn me a time out, but let me get some answers first before you edit it out?

You don't subtract $50 for cost avoided becaused you already accounted for it when you subtracted it in the $250 for direct costs. You are accounting for it twice.

Wholigan wrote:You don't subtract $50 for cost avoided becaused you already accounted for it when you subtracted it in the $250 for direct costs. You are accounting for it twice.

but wouldn't the seller get overcompensated then? If I don't subtract the $50 for costs avoided, the seller would stand to recover $1,295, or $45 more than she would have got had the K been performed.

No, the seller is actually recieving $1445. $150 deposit + $1295 now.

$1445 is what she is owed= $1250 (Expectation Interest) + 195 Net outlay on Ebony.

As a 0L, I don't know what the hell any of this means. However, I'm a fan of the hypo.

Fuck you all, and I'm not helping you with Expectation damages.

iwakeboard wrote:Fuck you all, and I'm not helping you with Expectation damages.

TTH wrote:

Wholigan wrote:You don't subtract $50 for cost avoided becaused you already accounted for it when you subtracted it in the $250 for direct costs. You are accounting for it twice.

but wouldn't the seller get overcompensated then? If I don't subtract the $50 for costs avoided, the seller would stand to recover $1,295, or $45 more than she would have got had the K been performed.

The seller would have stood to recover 1350 if the buyer had performed fully. Whol takes it.

gobucks101 wrote:I don't remember a goddamn thing from K but I love the hypo

+1

whirledpeas86 wrote: I don't know what the hell any of this means. However, I'm a fan of the hypo.

+1