Plaintiff wanted a boat that could travel fast and asked salesman for his recommendation. Boat could not travel at sufficient speeds for off-shore fishing and plaintiff sued. Plaintiff failed to establish that the seller knew that a slow boat was unacceptable.
What is warranty of fitness for a particular purpose? §2-315 - Bayliner
100
An affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain.
What is an Express Warranty? §2-313(1)
100
Loss Value + Other Loss – Cost Avoided – Loss Avoided
What is the measure for Expectation Damages?
100
Out of pocket expenditures to put the non-breacher back in the position as before forming the contract.
What are reliance damages?
100
Everyone pays their own attorney’s fees, therefore in contracts the loser does not have to pay the winner.
What is the American System?
200
Miller brought a crankshaft to the shipper to be sent for repair. Shipper delayed the shipment and miller brought action to recover for damages based on the mill not being able to operate.
What is the measure for contract damages? – Hadley v. Baxendale
200
Requirement that the goods pass without objection and are fit for the ordinary purpose for which the goods are to be used.
What is the Warranty of Merchantability? §2-314
200
In almost every breach, these damages ordinarily flow.
What are foreseeable damages?
200
Recovering the benefit that has been bestowed on the defendant
What are exceptions to Attorney’s Fees limitations?
300
Lawyer wanted his house built with Reading Pipe but got standard wrought iron pipe instead. It would have cost more to replace the pipe than the reduction in the value of the home.
What is economic waste? – Jacobs & Young v. Kent
300
Seller has reason to know that buyer is relying on the seller to make a recommendation of suitable goods to meet the buyer’s special requirements
What is Implied Warranty of Fitness for a Particular Purpose? §2-315
300
Losses are not recoverable to the extent that they could have been avoided without undue risk, burden or humiliation.
What is the duty to mitigate? §350
300
Remedy for contracts involving interests in land or unique goods
What is specific performance?
300
If the breaching conduct is also tortious, these damages may be available.
What are punitive damages?
400
Mining company strip-mined the family farm and refused to restore the land to its original condition as agreed in the contract. The court awarded only $300, as opposed to the $3000 it would have cost to repair the damage.
What is diminution in value? – Peevyhouse v. Garland Coal Co.
400
Warrant, Guarantee and a specific intention to make a warranty
What are elements that are not necessary for the creation of an express warranty? §2-313(2)
400
Difficulty of proving damages with reasonable certainty, difficulty of procuring a suitable substitute, and likelihood that damages could not be collected.
What are factors affecting the adequacy of damages? §360
400
This remedy is available when there is no valid contract (lack of consideration, fraud, etc)
What is restitution, unjust enrichment, quantum meruit?
400
Breach of the contract either caused bodily harm or non-physical harm is expected with the particular contract.
What are the exceptions for emotional distress damages? - §353
500
Contractor agreed to grade the land to a specified level and breached. Even though the land diminished in value, the court awarded these damages so that the work could be finished by another contractor.
What are cost of completion? American Standard v. Schectmani
500
The language must mention merchantability but need not appear in a writing
What is the method for excluding an implied warranty of merchantability? §2-316(2)
500
Evidence is not available to establish the precise amount of damages.
What is the requirement that damages be proven with reasonable certainty?
500
Remedy if money damages would be an inadequate substitute.
What is specific performance?
500
This interest is available if the amount due was clearly established.