Class Notes Dec 17

EXAM
Maybe some multiple choice
3-5 essay questions
Weight corresponds to their time
Check on blackboard to see if open book or not

Case names or restatement section numbers dont matter

Use CRAC

Go to black board and print out all of the notes and practice exams

Compensation Principle
Expectation Remedies rest 347

Unavoidable harms and mitigation

Damages not recoverable for loss that the injured party could have avoided without
undue risk, burden, or humiliation, recoverable for loss that the party made reasonable,
but unsuccessful, efforts to avoid (rest 350)
Alternative employment or work- loss avoidable if refuse to work that is
comparable or substantially similar to prior employment or work but loss unavoidable if
refuse work that is of a different or inferior kind

Alternative measures of damage

Rest 348- if defective or unfinished construction and injured party can not prove with
reasonable certaintny the loss in value to him or her then he can recover

Expectation Remedies- Limitations on Damages

-unavoidable loss
-reasonably certain loss (non-speculative)
Amount of loss must be reasonably certain must be a reasonable basis of
computation that leads to a fair and reasonable approximation of damages
Locke-
Kenford- loss of profits for dome management business was not reasonably
certain but speculation and conjecture
-foreseeable loss

Kenford Co v. County of Erie

Kenford and DSI entered into contract with county to operate a domed stadium, it was
never built
DSI sues county for breach of contract and sought money would have made
Courts decision-county wins,
General rule- loss of future profits as damages must be capable of proof with reasonable
certainty, rather than merely speculative
 New businesses- tougher to estimate lost profits with reasonable certainty because
no reasonable basis of experience
Here the assumptions needed to establish profitability and projections over 20
years required and speculation and conjecture and rendered the lost profit damages as not
reasonably certain
Assumptions
Facility completed and available 20 years
DSI successfully operate dome for 20 years
Dome hosted sports entertainment- maybe not get business you suspect

General rule- recoverable damages for breach are thse that are within reasonable
contemplation of the parties at the time of contract
1- those that arise naturally or in the usual course of things from a breach
2-those special circumstances or damages that do not arise naturally or in the
usual course from a breach but which were communicated by the P to the D and thus
known by both parties

Restatement 347 General Damages

Restatment 351 Unforeseeability

Damages are not recoverable if you cant reasonably foresee that result

UCC 2-715 Buyers Incidenal and consequential damages

Reliance Remedies
The law enforces promises mainly by compensating nonbreaching parties for
unavoidable, foreseeable, and reasonably certain harms caused by a breach

Different harms- harms as to expectation interest, harms as to reliance interest, harms to

restitution remedies

Expectation- place party in position would have been in had the contract been fully
performed by compensating gains and losses sustained

Reliance- place party in position in would have been in had the contract not been
performed by compensating losses sustained (benefits conferred, expenses incurred)

Restitution- before contract made by disgorging any conferred benefit on the other party

When would you ever want reliance damages instead of expectation?

When no claim for lost profits are not reasonably certain (secturity stove- P had exhibit to
go to)