Larry S. answered 01/30/23
Fantastic 1L, 2L, 3L & Bar Prep Tutor; You Will Love Working With Me!
- The general purpose of damages is to put the non-breaching party in the position s/he would have been in had the contract been fully performed. Here, had the contract been fully performed, Stephanie would have three planted lemon trees at a cost of $400. The facts state that Elain did the exact same work for $1,000. Therefore, in order to put Stephanie in a position had the original contract been fully performed, Jeff owes Stephanie $600, which is the extra money she had to pay to get the same job done. $400 is incorrect because the amount owed is related to what is required to essentially make the non-breaching party whole. She had to pay an extra $600, so $400 is insufficient and therefore, incorrect. Zero is also incorrect for the same reason.
- For 1L Contract Law, do not get caught up in trying to decide whether damages are punitive (punitive damages are not allowed in contract law with only one narrow exception so forget about punitive damages), consequential, incidental, or compensatory. Instead, focus on understanding damages in general. As I said, the general purpose of damages is to put the non-breaching party in the position s/he would have been in had the contract been fully performed. Here, the contract was not fully performed, as the fact pattern so states. Most states call these compensatory damages. That said, your professor is much more likely to be interested in seeing if you can explain IF damages are appropriate, WHY, the are appropriatre, and the AMOUNT of damages that should be awarded. If you simply refer to them as "damages," your professor will be quite happy.
- They are not consequential damages because consequential damages refer to a loss that was not ordinarily predicable. Here, it is entirely predicable that Marshall may fail to perform, and what the effects will be of Marshall's failure.
- If Ellen sues for return of her $10,000 she can sue for restitution. Here, there was a condition precedent to the formation of a contract for the sale of the boat. That condition was Ellen obtaining a TV show contract. Since Ellen did not obtain the TV show contract, the contract for the sale of the boat did not form. Therefor, Uncle M has been unjustly enriched and Ellen can sue for restitution. She can also seek, in the alternative, specific performance in the form of return of the $10,000.
- Specific performance, ordering completion of the contract and sale of the car. The other choices are not relevant.