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?
Trang 1Remedies for Breach of
Sales and Lease
Contracts
Trang 2Fulfill expectations and intentions of parties to agreement; give them “benefit of
the bargain” negotiated
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Trang 3UCC
When buyer/lessee in breach, seller/lessor can:
Trang 4Liquidated Damages
occurs
liquidated damages clause
“reasonable” and “nonpunitive”
against breaching buyer twenty percent of purchase price or
$500, whichever is less, as liquidated damages
Trang 5When seller/lessor in breach, buyer/lessee can:
Trang 6Elements Necessary to Obtain Legal “Cover”
goods
Trang 7Provided by UCC
remedies
remedies fail in their “essential purpose”