tailieunhanh - Lecture Dynamic business law - Chapter 24: Remedies for breach of sales and lease contracts

Chapter 24: Remedies for breach of sales and lease contracts. After reading this chapter, you will be able to answer the following questions: What constitutes a breach of a sales contract? What is resale? What money damages are available for breach? What are liquidated damages? What is cover? When is specific performance of the contract a remedy? | Chapter 24 Remedies for Breach of Sales and Lease Contracts Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 24: Remedies for Breach of Sales and Lease Contracts Goal of Contract Remedies Fulfill expectations and intentions of parties to agreement; give them “benefit of the bargain” negotiated 24- The primary goal of contract remedies is to fulfill the expectations and the intentions of the parties to an agreement; to give them the “benefit of the bargain” negotiated. 24- Remedies Available to Sellers and Lessors Under UCC When buyer/lessee in breach, seller/lessor can: Cancel contract Withhold delivery Sell or otherwise dispose of goods Sue to recover purchase price, lease payments due, or some other measure of damages that give seller/lessor “benefit of bargain” When the buyer is in breach, the seller can cancel the contract, withhold delivery, sell or otherwise dispose of the goods, sue to recover the purchase price, or seek some other measure of damages that gives the seller the “benefit of bargain.” Similar remedies are available to a lessor when a lessee breaches a lease agreement. 24- Liquidated Damages Definition: Damages specified in contract before breach occurs General Rule: Parties free to negotiate, as part of contract, a liquidated damages clause Courts will enforce liquidated damages clause, provided it is “reasonable” and “non-punitive” UCC Section 2-718: Allows non-breaching seller to claim against breaching buyer twenty percent of purchase price or $500, whichever is less, as liquidated damages Liquidated damages are damages specified in a contract before a breach occurs. As a general rule, parties are free to negotiate, as part of their contract, a liquidated damages clause. Courts will typically enforce a liquidated damages clause, provided it is “reasonable” and “non-punitive.” UCC Section 2-718 allows a . | Chapter 24 Remedies for Breach of Sales and Lease Contracts Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 24: Remedies for Breach of Sales and Lease Contracts Goal of Contract Remedies Fulfill expectations and intentions of parties to agreement; give them “benefit of the bargain” negotiated 24- The primary goal of contract remedies is to fulfill the expectations and the intentions of the parties to an agreement; to give them the “benefit of the bargain” negotiated. 24- Remedies Available to Sellers and Lessors Under UCC When buyer/lessee in breach, seller/lessor can: Cancel contract Withhold delivery Sell or otherwise dispose of goods Sue to recover purchase price, lease payments due, or some other measure of damages that give seller/lessor “benefit of bargain” When the buyer is in breach, the seller can cancel the contract, withhold delivery, sell or