Contract Law

Chapter 11 Lecture Notes

Remedies

The chapter covers the different types of remedies available to persons who have been injured by a breach of contract.  Usually, this is the first thing students want to know about the “What can I get?” aspect of law.
The chapter begins with a Chapter Overview to preview all of the types of remedies available to the injured party.  The chapter is divided into four main areas:  legal remedies, equitable remedies, waivers, and arbitration.        
Section B, Legal Remedies, highlights the three main types of monetary awards granted in contractual disputes.  The section on compensatory damages is exemplified by the factual situation of Hawkins v. McGee, the leading case in the area, as well as several examples from everyday situations. 
Punitive damages usually carries the most problems for the students, and the concept of the contractual breach coupled with some other fiduciary or moral violation should be emphasized. 
The section on consequential damages is highlighted by the famous case in the area, Hadley v. Baxendale.  This section concludes with a discussion of some contractual provisions that can affect the amount of the damages awarded to the parties-liquidated damages and limitation of damages clauses.
Equitable Remedies, Section C, details the four main types of nonmonetary awards:  injunctions (including TROs), specific performance, rescission and restitution, and reformation.  Each of these subjects is exemplified by factual situations taken from everyday life, and examples discussed previously in the book.  The last group of equitable remedies, the quasi-contractual remedies, is designed to reiterate the subjects and examples discussed in the beginning of the book.  In this fashion the entire text is brought full circle.
Section D, Waivers and Their Effect, concentrates on contractual clauses and how waivers may affect the ability to sue and/or recover from a contractual breach.  This section, in conjunction with the previous section on liquidated damages, can be used to focus on the problems and consequences of drafting contractual provisions.
The main text of the chapter concludes with a discussion of arbitration and its effect on damages.  This section provides a good opportunity to discuss alternatives to litigation of contractual disputes, such as mediation, settlement, and the like, thereby demonstrating a practical aspect of a contractual practice.
Section F, Sample Clauses, includes several examples of remedy clauses, followed by a brief analysis of the provision and its effect.  Once again, this can present an opportunity to discuss the problems of contract drafting.        
The Chapter Summary is divided into two main sections.  The first provides a quick prose review of the subjects covered in the chapter in order to reinforce the material learned.  The second section, the Synopsis, is an outline of the chapter material that can be used as the focus of the classroom lecture and lecture notes.  
The Key Terms section is a mini-glossary of all the terms used in the chapter.  By reinforcing the terminology, the student becomes more conversant and comfortable with legal phraseology, an important aspect of legal practice.        
Chapter 11 provides five Exercises to stimulate analysis of the text material.  Questions 1, 3, and 5 require an understanding of the basic material discussed in the chapter.  Questions 2 and 4 involve the student in persuasive argument, asking him or her to argue a particular point of law; this can serve as a practical beginning to drafting simple memoranda of law.    
Two Cases for Analysis are included, dealing with mutual mistake and exemplary damages. The Pioneer Exploration case concerns mutual mistake, and the questions following the summary focus on the difference between fraud and mistake. The Fazio v Cypress/GR Houston I, L.P. case concerns how to measure direct damages, damages resulting from the rescission of a contract and punitive daamges.
The new edition of BASIC CONTRACT LAW FOR PARALEGALS contains a section on how to prove contractual terms in court. It introduces the evidentiary concepts of authentication of a written document, hearsay, and certain exceptions to the hearsay rule. It is important to note that this may be the first time that the students are given any insight into the rules of evidence and how those rules effect the enforceability of contracts.
For Suggested Case References are included and demonstrate how courts tackle the different types of contractual remedies. These cases can be assigned as outside reading or used as the basis of classroom discussion or exams.
The Ethical Considerations section discusses the type of damages an aggrieved client may obtain from an attorney who is found to have committed malpractice.