English homework help
English homework help. Each question is worth the points as marked. Five points for improper formatting, and up
to 10 points for poor writing or organization can also be deducted. Below are some notes
you may find useful.
* First, the Court must determine if there is a valid contract. If there is not, the parties
might be entitled to restitution because the contract was voided (return of anything of
value they gave to the other party)
* Next, the Court must determine whether material terms were breached, and whether that
breach prevents the other party from performing
* If the breach is not material, then it is likely the Court will find SUBSTANTIAL
PERFORMANCE. Any deficiency can be fixed by paying the fair market value of
the difference between what was expected under the contract and what actually was
delivered
* If the breach was material (so central to the contract that it substantially impairs its
value) but performance by the non-breaching party is still possible, there is only a
PARTIAL BREACH. The non-breaching party’s performance is suspended while
the breaching party is given the opportunity to cure. (If the problem is not cured, it
can become a total breach)
* If the breach was material and total, the nonbreaching party should stop
performance on the contract and claim full contract damages
* Full contract damages are COMPENSATORY ( plus CONSEQUENTIAL and
INCIDENTAL damages, which are smaller amounts that we did not discuss)
* There is a preference for money, not specific performance
* Only economic damages awarded, not emotional damages
* No party gets a windfall
* Damages must be reasonably foreseeable, not speculative, and require mitigation
whenever possible
* Note: under the UCC, anything less than perfect tender is a breach; there is no
“substantial performance.” However, the UCC’s preference is to give the breaching party
the opportunity to cure, rather than to declare total breach right away.
* Compensatory damages seek to give the plaintiff the benefit of his/her bargain, to put
him/her in the same position as if the breach had not occurred.
* Calculation:
* GROSS PROFIT EXPECTED (Total contract price minus any costs)
* Plus EXPENDITURES made in reliance on the contract that cannot be
recouped
* [If some payments have already been received, subtract that from the total
damage award]
* Remember: once a party has learned about a breach, it must stop work on a contract and
it cannot continue to make expenditures in reliance on the contract. If it does, it will
not be able to recover those costs. Also, if there is a reasonable opportunity to mitigate
damages, the party is expected to take that. Any damage award will be reduced by
mitigation that was actually made or SHOULD have been made
1. Sarah contracts with Ken for Ken to construct a music studio. The total price will be
$75,000. The contract required Sarah to make a $5000 down payment and to pay the
remainder in installments. Sarah made the down payment. About two weeks later, before
paying any more money, she told Ken she did not want the studio any longer.
This is a total breach. Ken had already paid $10,000 in material, laborer’s wages and
subcontractor charges. Had he completed the whole studio, he would have spent a total of
$60,000. What are his compensatory damages? Explain your reasoning
(10 points)
2. Same as above, but assume after Sarah cancelled the contract, Ken hired a new
subcontractor for $5,000. Now his total expenses are $15,000. What affect, if any, does this
have on the damage award?
(5 points)
3. Same as number one, but assume that of those $10,000, Ken can reuse $2000 worth of
the materials on another job. What affect, if any, does this have on the damage award?
(5 points)
4. Same as number one, but assume that the next day Ken learned that he could do a twoday window installation job during the same time period he expected to work on Sarah’s
studio. Ken could do it himself without any other laborers, and his gross profit would be
$1000. He takes the job. What effect, if any, does this have on the damage award?
(5 points)
5. Same as number 4 but assume he turns down the window job. What effect, if any, does
this have on the damage award?
(5 points)
6. Sunshine offers to sell Squeeze Me 1000 bushels of oranges for $5 per bushel to be
delivered on April 1st. Squeeze Me agrees.
On March 31st, the price of oranges reaches $8 per bushel and, the next day, Sunshine
refuses to deliver the oranges to Squeeze Me. Squeeze Me is now the victim of a breach of
contract. Squeeze Me pays $9 per bushel to another supplier, Florida’s Oranges, which is
the only company that can provide oranges on short notice. The court, in order to put
Squeeze Me in the position they would have been in had Sunshine not breached, will award
expectation damages.
How much will Squeeze Me receive?
(10 point