CONTRACTSChapter 6. Remedies
A contracts to sellBlackacreto B for $100KB pays Aa$1K depositB spends $4K preparing for moveBefore transfer, market value ofBlackacrerises to $150KA refuses to transfer title to B
Hawkins v. McGee -Redux
How does the trial court measure damages?How does the New Hampshire Supreme Court measure damages?What else might the court have done?
What damages should the doctor pay?
Mr. Hart’s answer: Difference between burned hand and hairy handNew Hampshire Supreme Court’s answer: Difference between 100% perfect (or good) hand and hairy handA third option: Doctor’s fee
GOAL: To put non-breaching party in as good a position as if breaching party had fully performed.CALCULATING:How do we compute damages to achieve this goal?Direct damages=Loss in value of subject matter of K due to breach (loss in value of performance)Consequential damages=Lossesresultingfrombreach which are reasonably foreseeable & unavoidableincidental:costs of securing a substitute performance
J.O. Hooker & Sons, Inc. v. Roberts Cabinet Co.
How areexpectation damages awarded if there is an available substitute transaction?How are expectationdamages awarded if there isnoavailable substitute transaction?What if the contract is partially performed?What costs are considered?
Groves v. JohnWunderCo.
Diminution in Value v. Cost of PerformanceWhat is the breach?What is the cost of performance? What is the diminution in value?What does the court find to be the proper measure ofGroves’sloss? Why?What does the trial court argue?What if the breach was willful?
Peevyhousev. Garland Coal & Mining Co.
What is the breach at issue?What is the cost of performance? What is the diminution in value?What does the court find to be the proper measure of loss to thePeevyhouses? Why?What is the dissent’s argument?What about economic waste?