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General Remedy Rule
● Innocent Party should be placed IF POSSIBLE in exactly the same position as if guilty party had performed contract
● "Benefit of the Bargain"
Hairy Hand Case
● NYC mother in apartment with child
● Child grabs electric cord - gets 3rd degree burns
● Takes to hospital - if pay $, then doctor will take skin from thigh to cover the hand
● Hair follicle from thigh starting growing in the hand
● Hand doesn't look exactly like the other hand = breach of contract
Allowing the innocent party to cancel the contract and (try to) return to pre contract position
● Amount of money to compensate innocent party for the money the innocent party spent to perform their part of the contract
● Labor and Material Costs
● Money the innocent party expected to receive and keep if contract was fully performed
● If performance isn't 100%, then these damages can't be greater than if performed completely and received damages
● Money paid to innocent party for reasonably foreseeable future damages to innocent party resulting from guilty party breach
● Reasonably foreseeable by guilty party at time of contract
● Future damages to innocent party related to guilty party's breach of THIS CONTRACT
● Involves 3rd party - usually person dealing with innocent party - but not always
Baden Vs. Curtiss Breeding Service
● Inseminate cows
● "Stud was a dud"
● Court didn't grant consequential damages
● Previously agreed damage amount
● In lieu of consequential damages, and maybe compensatory and expectancy above
● Why? - because people are risk averse
● Make the guilty party perform the contract
● When money damages are inadequate because subject matter in unique (land, jewelry, racehorses)
● Positive & Negative
Positive Specific Performance
● Require guilty party to perform contract because no other remedy can put innocent party in same position
● For personal services, can only use if government-safety-related
● Professional sports - can't make them perform
Negative Specific Performance
● Require guilty party not to do what guilty party agreed no to do in contract
● Injunction or Restraining Order
● Covenants not to perform
● Employee contracts - "The Sopranos"
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