 Expectancy

o Out P in place they would be had K been performed

o Formula
 Damages = [loss of value + other loss] - [loss avoided + cost avoided]
 Note that loss of value is cost of performance plus profit
o Subsets of Expectancy Damages:
 General damages
 Incidental damages
 Consequential damages
 Measure of damages:
 Rock Island
 Morello
 Restatement § 346 and 347
o Lost Profit
 Warner
 Efficient Breach
o UCC
 2-601: buyer's rights on improper delivery
 2-601
 2-711
 2-712 (cover)
 2-713
 2-714
o Qualifications:
 Common Law
 Duty to mitigate
 cases
 New business rule (NBR)
 cases
 UCC
 Buyer
 Consequential damages only apply to the buyer
 Seller
 Lost volume seller
 Duty to mitigate (cover)
 Reliance
o Goal
o Measure of damages
 Goodman
 Exception: Walter
 Employment contracts
 Eby
o Partial enforcement
o Limitations
 Lost future income
 No negative expectancy
 Restitution
o Goal
o When to choose restitution over expectancy
 Non-profitable K
 Anderco
 Profit/Value too speculative
o Measure of damages
 Cases
o Restatement § 371
o Cases
o Limitations
 If k enforceable, return of value of benefit conferred, but must be less than
expectancy
 Negative expectancy
 Others...