1. Ch.6CExpectation Damages1

2.  A contracts to sell Blackacre to B for $100K  B pays A a $1K deposit  B spends $4K preparing for move  Before transfer, market value of Blackacre rises to $150K  A refuses to transfer title to B Ch.6APunitive Damages2

3.  How does the trial court measure damages?  How does the New Hampshire Supreme Court measure damages?  What else might the court have done? Ch.6APunitive Damages3

4.  Mr. Hart’s answer: Difference between burned hand and hairy hand  New Hampshire Supreme Court’s answer: Difference between 100% perfect (or good) hand and hairy hand  A third option: Doctor’s fee November 15Remedies4 Reliance Damages (349) Expectation Damages (347) Restitution Damages (373)

5.  GOAL: To put non-breaching party in as good a position as if breaching party had fully performed.  CALCULATING: How do we compute damages to achieve this goal?  Direct damages=Loss in value of subject matter of K due to breach (loss in value of performance)  Consequential damages=Losses resulting from breach which are reasonably foreseeable & unavoidable ▪ incidental: costs of securing a substitute performance Class 35Remedies5

6.  How are expectation damages awarded if there is an available substitute transaction?  How are expectation damages awarded if there is no available substitute transaction?  What if the contract is partially performed?  What costs are considered? Ch.6CExpectation Damages6

7. Diminution in Value v. Cost of Performance  What is the breach?  What is the cost of performance? What is the diminution in value?  What does the court find to be the proper measure of Groves’s loss? Why?  What does the trial court argue?  What if the breach was willful? Ch.6CExpectation Damages7

8.  What is the breach at issue?  What is the cost of performance? What is the diminution in value?  What does the court find to be the proper measure of loss to the Peevyhouses? Why?  What is the dissent’s argument?  What about economic waste? Ch.6CExpectation Damages8