LSB 3213 1st Edition Lecture 21 Today Discuss Exams 2 and 3 Begin Remedies Torts and Criminal Law Recap Exam 2 Nice work Top scores and average scores o Average score 79 80 o Highest score set curve missed two questions 109 o Extra Credit Assignment grades posted Calculations o 2 question curve 100 31 questions correct o 33 questions x 3 points 99 points 1 100 o Extra credit points added to score Preview of Exam 3 Learn terminology and apply to scenarios Not a cumulative exam except for Four legal philosophies Common law principles Same format as previous exams Study guide and optional extra credit assignment Third and Final Exam Thursday May 7 10 00 11 50 Same classroom Physical Sciences 110 Exam 1 constitutional law legal system Exam 2 putting deals together contracts Exam 3 when things go wrong remedies torts criminal law Current Events Crowdfunding These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Can contribute money to projects online and are rewarded for the amount of money donated o The Crowd Fund Act was passed last year that made sharing stock as a reward to giving money to a project legal Blue Bell Ice Cream o A Blue Bell production facility was shut down in Broken Arrow because the ice cream was contaminated with listeria and killed people in Kansas o Could those affected sue the factory based on public safety This is where torts come in when you are wronged in someway not related to contracts Germanwings Crash o Airplane co pilot intentionally crashed the plane into the Alps How could the airline be sued and based on what Remedies for Breach of Contract 4 types of damages money o Party that suffered the loss is able to get the benefit of the bargain what they bargained for agreed to in the contract is what the court will give you 5 types of equitable remedies Conceptually benefit of the bargain Damages Compensatory direct losses costs and incidentals o Direct damages and incidentals that you actually lost these can always be won in lawsuit if you win the lawsuit o Example if you buy 10 apples for 10 and they are rotten you could get the 10 back and if you had to pay 5 to ship the apples back you could get that money back as well Consequential indirect foreseeable losses special o Damages caused by the breach of contract o Example if you ate the rotten apples and got sick you could sue to recover your medical costs o These are not guaranteed to be paid back o The issue how far can you take get the consequential damages Test are the damages forseeable Punitive punish and deter wrongdoing o This is rare in contract damages they only care about benefit of the bargain and related damages Nominal moral victory wrongdoing w o financial loss o You won the case but no financial damages are awarded Equitable Remedies Rescission undo the contract pretend it never happened o Seen if you sue based on mistake or misrepresentation Restitution give back the goods pay back the money o Seen in equitable remedies ie Unjust enrichment Specific Performance take an action o Court ordered to do something o Example sell the house disclose the information deliver the goods Injunction don t take an action Reformation rewrite the contract correct an error Damages Example Contract for Scarves Factory sells 300 scarves to retail store for 3 000 to be delivered on Friday Then the store says that they no longer want them refuse them and this is a valid contract What damages remedies can they sue for Direct damages 3 000 plus any incidentals What if factory has not made any scarves yet when the store decides that they changed their mind Lost profits 3 000 2 500 costs 500 benefit of the bargain What if after the store refuses delivery factory sells to another customer for 2 000 Can recover 1 000 after mitigation of damages still sell the scarves What if the factory sells to another store for 4 000 Nominal damages only the court says you win but you don t win any damages because they made more due to the breach of contract economics vs morality What if the store paid 3 000 to the factory but factory fails to deliver Rescission and restitution 3 000 recovery What if the store mitigated damages and bought replacement scarves for 4 000 from another factory Can they recover damages from the original factory If the store had paid the original factory 3 000 then store recovers the 3 000 plus 1 000 in additional cost What if the store had not paid the original factory yet The store recovers 1 000 against the original factory 4 000 3 000 What if the store failed to mitigate the damages No recovery or reduced recovery What if late delivery had to be there by Friday caused store to miss scarf festival a large event to sell scarves at Lost profits if 1 foreseeable and 2 proven with reasonable certainty o Foreseeable shown by communicating in advance not foreseeable if they didn t tell the factory about the festival o Reasonable certainty if the festival happens every year for the past five years for example Consequential Damages Two factor analysis Reasonably foreseeable Provable with reasonable certainty Scarves example consequentials due to lost profits Software failure example a software company simplifies the process for hospitals to order supplies But when the software wouldn t integrate into hospitals operating system for 7 months the hospital had to hire a staff to manually order products So the hospital can sue for consequential damages as it was foreseeable that damages would be incurred o consequentials due to costs incurred Unique Goods Common in real estate can easily sue for specific remedy If a bank buys antique art from gallery for 25 million and the gallery fails to deliver what are the bank s remedies o Rescission and restitution money back Specific performance unique no substitutes What if bank contracted with painter not gallery Can you force the painter to finish the paintings No this looks like involuntary servitude and it s too difficult to monitor quality Can t sue for specific performance for personal services