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Question 1

What is quasi-contractual relief?

Answer 1

When a defaulting P hasn’t substantially performed, but might be allowed restitution in order to avoid unjust enrichment (D was brought unconscious to the hospital and treated, so he must pay the reasonable value of the services he got).

Question 2

If the defaulting party asks for relief, what are the different views on that?

Answer 2

• majority: no remedy
• minority: he shouldn’t be treated like an outlaw
• UCC: $500 or 20% rule: defaulting buyer can get restitution for payment minus either $500 or 20% of the obligation, whichever is less, and subject to actual damages

Question 3

What is an example of the UCC $500 or 20% rule?

Answer 3

If there’s a contract to buy $2100 worth of furniture and D paid $700, then repudiated and sued for restitution:

• 20% of 2100 = $420
• subtract $420 from $700 = $280
• D gets $280 minus all damages and benefits

Question 4

Omissions/commissions of an agent are regarded as what?

Answer 4

The acts of the client the agent represents. Client is bound by agent’s acts within the scope of employment

Question 5

If there is a breach, what are the three remedies a plaintiff can pursue?

Answer 5

• treat contract as rescinded and recover in quantum meruit
• keep contract alive and be ready/able to perform
• treat repudiation as an end to the contract and sue for profits he would’ve gotten if not prevented

Question 6

What are the two basic types of remedies?

Answer 6

Damages and specific performance

Question 7

What are damages?

Answer 7

Money intended to put the injured party in the position he would’ve been if the contract had been performed.

Question 8

What are the three basic types of damages?

Answer 8

• Expectation damages
• Reliance damages
• Restitutionary damages

Question 9

What are liquidated damages?

Answer 9

When parties try to establish in advance of breach an amount of money that will adequately compensate an injured party for a breach. Then the injured party can collect the specified amount without having to prove damages.

Question 10

When are liquidated damages most useful?

Answer 10

When actual damages are hard to figure out in advance and to prove

Question 11

Who has the burden of proof to show that liquidated damages should not be applied?

Answer 11

D must show they were disproportionate to the foreseeable/actual harm or that they were a penalty

Question 12

What things must a liquidated damages clause have to be valid?

Answer 12

• parties intend to provide for damages (not a penalty)
• injury caused by breach is uncertain or difficult to quantify
• amount is a reasonable pre-estimate of probable losses

Question 13

If a liquidated damages provision was valid when made, but later events made the damages actually ascertainable, what are the different views about that?

Answer 13

• traditional: enforceable
• modern: unenforceable if disproportionate to actual damages
• UCC: enforceable if reasonable in light of anticipated/actual harm of the breach