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Foundation of Equities and Remedies, Professor Fox...

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Out l i neEqui t i es& Remedi es  Backgr ound o Cl assi ficat i onofRemedi es  Damages  Amoneyr emedyai medat( a)maki nggoodt heπ’ sl osses, i . e. ,r et ur ni ngπ t ohi sr i ght f ulposi t i on( compensat ory) ,or ( b)puni shi ngΔ ( puni t i v e)  Rest i t ut i on  Pr event sunj ustenr i c hmentofΔ bymaki nghi m gi veup whathewr ongf ul l yobt ai nedf r om π  Coer ci ver emedi es  Aj udi ci alcommandt oΔ t oactort or ef r ai nf r om ac t i ng i nor dert opr event /cor r ecthar m.Fai l ur et ocompl y= cont emptofcour t  Typi cal l yi nj unct i on  Decl ar at or yr emedi es  Anaut hor i t at i vej udi ci alst at ementoft hepar t i es’r i ght s f orpur poseofgui di ngf ut ur ebe havi or /pr event i ngl oss  Typi cal l ydecl ar at or yj udgment  Asl ongasdi sput ei sr i pebe t weenpar t i es  Anci l l aryr emedi es  Var i ousme t hodsf orr ecover i ng j udgment sandcost sof obt ai ni ngt hem o Ot herCl assi ficat i ons  Subst i t ut i onar y( Damages) /Speci fic( Coer ci ve)  Subsi t ut i onar y  Subst i t ut i ngf orwhatyou had  Li kemoneycompensat i on  Speci fic  Or der i ngsomeonet odosomet hi ng  Legal( Damages) /Equi t abl e( Coer ci ve)  Legal  Typi cal l ydamages  Equi t abl e  Typi cal l yi nj unct i ons  Rest i t ut i oncanbeSubst i t ut i onary/Legal( $pai d)or Speci fic/Equi t abl e( speci ficpr oper t yr est or edt oπ)  Decl ar at or yr el i efcr eat ur eofs t at ut e,nei t her subst i t ut i onar y/l egalnorspeci fic/equi t abl e  Decl ar at or yr el i efi scr eat ur eofs t at ut e

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 Compensat or yDamages o Defini t i on:Asubst i t ut i onar ymonet ar yr emedydesi gnedt o compensat epl ai nt i fff ori nj urybyr est or i ngt or i ght f ulposi t i on. o Just i ficat i on  Cor r ect i veJus t i ce;Economi cI ncent i vest oRi ght f ulConduct o Evi dence  π’ sl ossesaspr oper l ymeasur ed o Char act er i st i csofCompensat or yDamages  Tr adi t i onal l ypai di nal umpsum,i ncl udi ngpast ,pr esentand f ut ur el osses,f ol l owi ngj udgment  Maybeenf or cedbysei z ur eofΔ’ spr oper t y ,sal eoft hepr oper t y andappl i cat i onoft hef undst opayt hej udgment  Anci l l i aryr el i ef  Set t l ement sof t enpr ovi def or$payment sovert i me( “ st r uct ur ed set t l ement ” )  Moneyi sn’ tpai di nl umpsum her e  I t sovert i me o Tor t  Tor ti nj ur y  Gener al l y$r ecov er yput sπ i nposi t i onshewoul dhave beeni nhadΔ notcommi t t edt het or t .  A.Economi cDamages( “ Speci al ” )  LostEar ni ngs  Bet weent i meofi nj ur y& t r i al& pas t t r i alt i me  Val ueofl oss( Sept11case)  Mar ke tval ueatpoi nti nt i me  Exofspeci alpr oper t y( Tr i ni t ychur ch case)  Wher enomonet aryl ossbut r ecover ygot t en  LostEar ni ngCapaci t y  Nohi st or ybutpr oj ect i onofear ni ngs  Medi cal /Ot herOutofPoc ke tExpenses  B.NonEconomi cDamages( “ Gener al ” )  Physi calPai nandSuffer i ng  Samewhi l eyouar el i vi ng

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 Ment alAngui sh( Emot i onalDi st r ess) i ncl udi ngHumi l i at i on/Embar r assment  Di sabi l i t y/Di sfigur ement  LossofEnj oymentofLi f e( “ Hedoni c Damages” )  C.Cal cul at i ngFut ur eDamages  How l ongwi l li nj uryl ast ?  I fper manent ,whati spl ai nt i ff’ sl i f e expect ancy/wor kexpect ancy?  Forl ostear ni ngcapaci t y ,t hewor set he i nj uryi s,t hemor econj ect ur al  Foreconomi cdamages,consi deri nflat i on ( i ncr easesdamages) ,r educt i ont opr esent val ue( r educesdamages) .Al soconsi derl i kel y pr omot i onsf orl os tf ut ur eear ni ngs  Pr esentval ue:Damagesgi vennow t o beusedf ort hef ut ur e  Thati nf ut ur ear ewor t hmor e  Addi nf ori nflat i onbut t akei toutf orpr esent val ue  D.Pr oof  Demonst r at i veExhi bi t s  PerDi em ( perday) Ar gument  Forpai n& suffer i ng,show cal cul at i on persmal luni t*numberofdays  Exper tWi t nesses  E.LossofConsor t i um  Def :sexualr el at i onsamong spouses/compani onshi p/affect i on  Spouseofi nj ur ed,Pbr i ngsc l ai m  Fort hes pouse  Ont hei rownbehal ff or t hat  But ,l osesi fPl oses t hei rcase Tor tDeat h  Survi valact i on

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Decedent ’ sest at ebr i ngsact i onagai ns tt or t f easor ( orhi sest at e)f orsamedamagesdecedenthi msel f coul dhaver ecover ed.  Wr ongf uldeat hact i on  Benefici ar i esr ecoverf ort hei rowni nj ur i escaused bydecedent ’ sdeat h,suchasl ossoffinanci al suppor t ,servi ces,affect i on,gui dance, compani onshi p Tor tHar mt oRealPr oper t y  Di ffer encei nval uei mmedi at e l ybef or eandi mmedi at el y af t erdamage  Gener alr ul e:Di ffer encei nmar ketval uebef or eand af t erdamage OR  Rest or at i oncostunl essi texceedsdi ffer encei nval ue enough( or ,somecour t ssay ,exceedspr edamageval ue enough)t obedeemedunr easonabl eeconomi cwast e &  Lossofuse &  Al mostal waysmeasur edbyr ent alval ueofpr oper t y  Di scomf or t /annoyanceasoccupant Tor t :Har mt oPer sonalPr oper t y  Di ffer encei nf mvi mmedi at el ybef or eandi mmedi at el y af t erdamage OR  Repai rcostunl essi texceedsdi ffer encei nval ueenough ( or ,somecour t ssay ,exceedspr edamageval ueenough) t obedeemedunr easonabl eeconomi cwast e&  Lossofuse  Rent alval ue Compensat or yDamages:Tor t :Pr oper t yDamage:Det er mi ni ng Mar ke tVal ue  Sal esofsi mi l arpr oper t i es( “ compar abl es” )  Appr ai sal sofcomponent sofpr oper t y  Act i vemar keti nsamet ypeofpr oper t y  Repai rcost  Repl acementcost[ l essdepr eci at i on]  Capi t al i zat i onofear ni ngs  Rest at ement( Tor t s)2d§911 Val ue 

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 Val uemeansexchange[ mar ke t ]val ueort heval ue t ot heowneri ft hi si sgr eat ert hant heexchange val ue.  But ,Si t uat i onst hatDevi at ef r om t heMar ket Val ueConvent i on  Cour t swi l ldevi at ef r om t hemar ke t val ueconvent i oni ft her ei sno f unct i oni ngmar ketort hemar keti s subst ant i al l yunder compensat or y .  E. g. ,char i t abl eusepr oper t y .  E. g. ,per sonal usepr oper t y ,such asahousewhosecostt or ebui l d i sgr eat ert hani t smar ke tval ue.  E. g. ,usedconsumergoodsand cl ot hi ng( butusual l ynotused car s) .  E. g. ,sent i ment al l yval ued pr oper t y( suchasweddi ng pi c t ur es) .  E. g. ,yourRemedi esout l i ne. Tor t :Pr oper t yDamageExampl es  πj us tboughtanew carf or$20, 000.Tenmi l esdownt he r oad,whent hecar ’ s“ used”mar ke tval uewas$15, 000,Δ negl i gent l ysmashedi nt oi t .Thecarcoul dber epai r edf or $17, 500.I t sval uewi t houtt her epai r si s$0. I nsi de t hecarwer esomebar el yusedt hi ngs( cl ot hes,cel lphone, sungl asses,et c. )t hatπ hadr ecent l yboughtf or$2, 000. Bef or et heacci dent ,π coul dhavesol dt hesei t emsont he “ used”mar ketf or$500.Now t hei t emsar ewor t h$0 becauseoft heacci dent .How muchdoesπ ge t ?  Repl acementcost ,NOTmar ketval ue  Thesear er ecent l yboughti t ems. Ti meofVal ui ngLoss  Asappl i edt opr oper t yl osses,t heconvent i oni sval ueat t het i meofl oss.  Cour t swi l ldevi at ewhent heconvent i oni s subst ant i al l yunder -orover compensat or y  E. g. ,Ti meofyi e l df orcr ops.

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 E. g. ,Thr eeappr oachest opr oper t yt hatfluct uat es i nval ue,e . g. ,secur i t i es:  ( 1)t i meofl oss;  ( 2)hi ghesti nt er medi at eval ue;OR  ( 3)hi ghestval uebet weendi scover yandr easonabl e t i met ocover .  Var i ousTor t sandRemedi es  Assaul t ,bat t ery( offensi vecont act ) ,f al sei mpr i sonment , t r espass( somet i mes) ,I I ED,NI ED:emot i onaldi st r ess  Def amat i on:Har mt or eput at i on;emot i onaldi st r ess  Tor t i ousi nt er f er encewi t hcont r actorbusi ness r el at i onshi p:Har mt obusi nessexpect ancy=l ostpr ofit s o Cont r ac t  Cont r ac ti nj ury  Gener al l y$r ecov er yput sπ i nposi t i onshewoul dhave beeni nhadΔ notbr eached  Expect at i on  Def :π puti nposi t i onhadΔ per f or medpr omi se  Pr ofit sl ost( gai nspr event ed)bybr each  Justt hi nkofpr ofiti t sel f  Theexpect at i oni nt er esti st hemai ni nt er estyou wi l l pur suei nabr eachofcont r actact i on,buti nsome ci r cumst ances,i tmaybebet t ert ogof orr el i anceor r est i t ut i on.  Rel i ance  Def :π puti nsameposi t i onasbef or econt r actmade  Costofπ’ sownper f or mance( expensesi ncur r ed per f or mi ngunderK andot herr el at edmat t er s)  Thi nkofoutofpocke ts t uff  Rest i t ut i on  Def :Par t yr ecover sval ueofbenefitconf er r edonot her par t y .  “ Tr uer est i t ut i on” :usedbybr eachi ngpar t y( Δ)t o pr eventunj us tenr i c hmentofnonbr eac hi ngpar t y ( π) .  Forservi cesr ender ed  “ Rest i t ut i onar ydamages” :usedbyπ t osubst i t ut e f orr el i ancedamagesi fπ’ sout of pocke tcos t sdon’ t f ul l yval ueπ’ sper f or mance.

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 Notbasedonunj ustenr i chment .  Usual l yusedt omeasur eval ueofservi ces underK. o Buyer ’ sRemedi esundert heUCC ( sal eofgoods)  UCC §2711: Buyer ’ sRemedi esi fGoodsNotAccept ed  I fasel l erf ai l st odel i v eratal lORi ft hebuyerr i ght f ul l y r ej ect st hegoodsasnonconf or mi ngorj us t i fiabl yr evokes accept ance,buyermayr ecov erdamagesbasedon:  1.coverpr i ce( §2712)  Anonaccept i ngbuyerCOVERSby pur chasi ngsubst i t ut egoodse l sewher e( i n goodf ai t h& w/ounr easonabl edel ay) .Hi s damagesar e:  Di ffer encebet weencostofcover & K pr i ce PLUS  Consequent i al s MI NUS  ExpensesSav ed OR  2.di ffer encei nval ue ( §2713)  I fanonaccept i ngbuyerdoesnotcover ,she mayr ecoverdamagesmeasur edby:  t hedi ffer encebe t weent hemar ke tpr i ce oft hegoodsandt hecont r actpr i ce PLUS  Consequent i al s MI NUS  Cost sSaved  UCC §2714: Buyer ’ sRemedi esf orBr eachofWar r ant y( Goods Accept ed)  I fabuyeraccept sgoodst hatar enotaswar r ant ed ( expr essori mpl i ed)shemayr ecoverdamagesas measur edby:  t hedi ffer encei nval uebet weent hegoodsas war r ant edandt hegoodsr ecei ved PLUS  Consequent i al s o Sel l er ’ sRemedi esUnderTheUCC

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UCC §2703:Sel l er ’ sDamages  Uponabuyer ’ swr ongf ulf ai l ur et opay ,asel l ermay r ecoverdamagesbasedon:  1.Resal eoft hegoods( §2706)  I fabuyerwr ongf ul l yf ai l st opayf orsomeor al loft hegoodst hathavenotye tbeen accept edt hesel l ermayr esel lt hegoodst o anot herbuyerandr ecoverdamages measur edby:  t hedi ffer encebe t weent her esal epr i ce andt hecont r actpr i ce PLUS  I nci dent al s( NOTconsequent i al s) MI NUS  ExpensesSav ed OR  Di ffer encei nval ue( §2708)  I fasel l erdoesnotr esel l ,shemayr ecover damagesmeasur edby:  t hedi ffer encebe t weent hemar ke tpr i ce andt heunpai dcont r actpr i ce OR  i ft hesel l eri savol umesel l er ,t he pr ofitl ostasar esul tofbuyer ’ sbr each PLUS  I nci dent al s MI NUS  ExpensesSav ed OR  Pr i ce o A“ Hybr i d”Cl ai m:Mi sr epr esent at i on  Recal lt hatt or tdamagesar ei nt endedt ocompensat ef ori nj ur y suffer edbyπ  Cont r ac tdamagesar ei nt endedt ocompensat ef orl ossoft he benefitpr omi sed( benefitoft hebar gai n=pr ofitf r om t r ansact i on)  Mi sr epr esent at i oni sat or t. . .buti ti nvol v esacont r act ual t r ansact i oni nwhi chaπ want edt hebenefitoft hebar gai n.  Cat egor i es 

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 Fr audul entMi sr epr esent at i on  I nt ent i onal  Negl i gentMi sr epr esent at i on  Car el essst uffyousai d,& youshoul dhav eknown be t t er  I nnocentMi sr epr esent at i on  Notdonecar el essl ybuti ti sf al se  Pr oxi mat eCause  Thesel l erofpubl i cl yt r adedst ocki naphar maceut i cal companyl i edt oi nvest or sbyt el l i ngt hem ( f al sel y)t hatt he FDAhadr ecent l yappr ovedt hecompany’ smanuf act ur e andsal eofanew dr ug.Thei nvest or spai d$200per shar e.Att hatmoment ,what ’ st hei rl oss ?  Amont hl at er ,t hecompany’ st r easur erembez z l edf unds f r om t hecompany ,causi ngt hecompanyt ogoi nsol vent andmaki ngt hest ockwor t hl ess.Assumet hati nvest or s woul dnothavei nvest edbutf ort hel i eaboutt henew dr ug.How muchshoul dt heyr ecover ? Atl east$200 pershar e?  Thecompanywentsout hbasedonunr el at edt onew dr ug. Causei nf acti smet ,BUTNOTpr oxi mat ecause.NO r ecover yf orf r audcl ai m her e!( ver susi famont hl at er ,NY t i messai dnoFDA,t henmar ketdr ops,t hencanr ecov er ) .  Remember :t oqual i f yf oranydamagesπ mustpr ove bot hcausei nf actandpr oxi mat ecause.  Pr oxi mat ecause=wasπ’ sl ossar easonabl y f or eseeabl er esul toft hef r aud o TheFor eseeabi l i t yRequi r ement  Compensat or ydamagesmaynotber ecover edunl esst hewr ong wast hepr oxi mat ecauseoft hedamagessought .Ther ul esar e di ffer ent ,t hough,bet weent or t sandcont r act s.I ngener al ,t he t esti smor el i ber alf ort or t s( andmostl i ber alf ori nt ent i onal t or t s)t hanf orcont r act s.  TORTS  Adef endanti sl i abl ef orhar mt hatwasofat ypet hatwas ar easonabl yf or eseeabl econsequenceofdef endant ’ s t or t i ousbehavi or .  CONTRACTS

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 Adef endanti sl i abl ef orhar mt hatwasr easonabl y f or eseeabl et ot hedef endantwhent hecont r ac twasmade. Har mi sr easonabl yf or eseeabl e( 1)i fi ti scausedbya br eachi nt heor di nar ycour seofevent s,or( 2)i fi tar i ses f r om speci alci r cumst ancesofwhi cht hedef endanthad r easont oknow.BUTi fbr eac hi sonl ynonpaymentof$, noconsequent i al s.I nt er estadded. UCC §2719  ( 1)( a)t heagr eementmaypr ovi def orr emedi esi naddi t i on t oori nsubst i t ut i onf ort hosepr ovi dedi nt hi sAr t i cl eand mayl i mi toral t ert hemeasur eofdamagesr ecov er abl e undert hi sAr t i cl e,asbyl i mi t i ngt hebuyer ' sr emedi est o r e t ur noft hegoodsandr epaymentoft hepr i ceort o r epai randr epl acementofnonconf or mi nggoodsorpar t s; & ( b)r esor tt oar emedyaspr ovi dedi sopt i onalunl ess t her emedyi sexpr essl yagr eedt obeexcl usi ve,i nwhi ch casei ti st hesol er emedy .  ( 2)Wher eci r cumst ancescauseanexcl usi veorl i mi t ed r emedyt of ai lofi t sessent i alpur pose,r emedymaybehad aspr ovi dedi nt hi sAct . ( 3)Consequent i aldamagesmaybel i mi t edorexcl uded unl esst hel i mi t at i onorexcl usi oni sunconsci onabl e. Li mi t at i onofconsequent i aldamagesf ori nj uryt ot he per soni nt hecaseofconsumergoodsi spr i maf aci e unconsci onabl ebutl i mi t at i onofdamageswher et hel oss i scommer ci ali snot .  I t spr i maf aci eunconsci onabl et ohaveper sonali nj ur yf or consumergoods  Socantl i mi tl i kewi t hl anguage  2719doesNOTappl yt ol i qui dat eddamages UCC §2715:Consequent i alDamages  Gener al l yt hesamet estascommonl aw.Buyermay r ecover  ( 1)f orl ossesar i si ngf r om mat t er sofwhi ch t hesel l erhadr easont oknow whent hecont r act wasmadeandwhi chcoul dnot bepr event edbycoverorot her wi se,&

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 ( 2)f orbodi l yi nj ur yorpr oper t ydamagecausedby br eachofwar r ant y . o TheCer t ai nt yRequi r ement :a/k/aCausei nFac t& Ext entofHar m  π usual l yhast hebur denofpr ovi ng( 1)t hatΔ’ swr ongi nf act causedπ somehar m and( 2)t heext entoft hehar m Δ’ swr ong caused.  Thef actofhar m canbebasedonr easonabl ei nf er encei nl i ght oft heevi dence.E. g. ,t heTor t scaseoft heπ whof el ldownΔ’ s def ect i veandunl i ght edst ai r s.  Cour t sof t ensayt hatt heext entofharm needonl ybepr ov en wi t h“ r easonabl ecer t ai nt y . ”Cour t sal soof t ensayt hat“ a wr ongdoershal lbeart her i skoft heuncer t ai nt yt hathi sown wr onghascr eat ed. ” o Fur t herLi mi t sonCompensat or yDamages  Byagr eementbet weent hepar t i es  Par t i escanagr eet ol i mi tr emedi es  Li qui dat eddamages  CommonLaw  Damagesf orbr eachbyei t herpar t ymaybe l i qui dat edi nt heagr eement( i . e. ,t hepar t i es agr eeont heamountofdamagespayabl ef or br each)butonl yatanamountt hati s r easonabl ei nt hel i ghtof :  ( a) t heant i ci pat edoract uall osscaused byt hebr each & BUT,at er m fixi ngunr easonabl y l ar gel i qui dat eddamagesi s unenf or ceabl eongr oundsof publ i cpol i cyasapenal t y .  ( b) t hedi fficul t i esofpr oofofl oss.  UCC §2718  Sameascommonl aw f orl i qui dat eddamages  Damagesf orbr eachbyei t herpar t y maybel i qui dat edi nt heagr eementbut onl yatanamountt hati sr easonabl ei n t hel i ghtoft heant i ci pat edoract ual har m causedbyt hebr each,t he di fficul t i esofpr oofofl oss,andt he i nconveni enceornonf easi bi l i t yof

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ot herwi seobt ai ni nganadequat e r emedy .At er m fixi ngunr easonabl y l ar gel i qui dat eddamagesi sv oi dasa penal t y.  Li mi t at i onofr emedi es  Twof or ms:  Pr ecl uder ecov er yofsomef or m ofdamages suchasconsequent i al s  Unconsci onabi l i t ydef eat s I funconsci onabl e,wi l lNOTbe enf or ced  Subst i t ut eadi ffer entr emedyt hanones pr ovi dedi ncodeorot herwi se  UNLESSFai l sofi t sessent i alpur pose def eat s Exampl es  1.AandB si gnawr i t t encont r actunderwhi chAi st oact i napl aypr oducedbyB f orat enweekseasonf or$4, 000. At er m pr ovi dest hat" i fei t herpar t yshal lf ai lt oper f or m asagr eedi nanyr especthewi l lpay$10, 000asl i qui dat ed damagesandnotasapenal t y . "Al eav est hepl aybef or e t hel astweekt ot akeanot herj ob.Thepl ayi ssol doutf or t hatweekandAi sr epl acedbyasui t abl eunder s t udy . CanB r ecoverundert hel i qui dat eddamagespr ovi si on?  Answer :Theamountfixedi sunr easonabl ei nt he l i ghtofbot ht heant i ci pat edandt heact uall oss and,i nspi t eoft heuseoft hewor ds" l i qui dat ed damages, "t het er m pr ovi desf orapenal t yandi s unenf or ceabl eongr oundsofpubl i cpol i cy .  Li qui dat eddamagescl ausesmor el i kel yt obe uphel di ft heyal l ow pr or at aamount s  2.A,B andC f or m apar t ner shi pt opr act i ceve t er i nary medi ci nei nat ownf ort enyear s.I nt hepar t ner shi p agr eement ,eachpr omi sest hati f ,ont het er mi nat i onof t hepar t ner shi p,t hepr act i cei scont i nuedbyt heot her t womember s,hewi l lnotpr act i cev et er i nar ymedi ci nei n t hesamet owndur i ngi t scont i nuanceupt oamaxi mum oft hr eeyear s.At er m pr ovi dest hatf orbr eachoft hi s dut y" heshal lf or f ei t$50, 000t obecol l ect edbyt heot her s

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asdamages."Al eavest hepar t ner shi p,andt hepr act i ce i scont i nuedbyB andC.Ai mmedi at el ybegi nst opr act i ce ve t er i nar ymedi ci nei nt hesamet own.Thel ossact ual l y causedt oB andC i sdi fficul tofpr oofand$50, 000i snot anunr easonabl eest i mat eofi t .CanB & C r ecov erunder t hel i qui dat eddamagespr ovi si on?  Answer :Event hough$50, 000maybe unr easonabl ei nr el at i ont ot hel osst hatmi ghthave r esul t edi not herci r cumst ances,i ti snot unr easonabl ei nr el at i ont ot heact uall oss. Ther ef or e,t het er m doesnotpr ovi def orapenal t y andi t senf or cementi snotpr ecl udedongr oundsof publ i cpol i cy .  I fr easonabl ef orant i ci pat eddamages,canbe enf or ceabl e  3.Acont r act st obui l dagr andst andf orB' sr acet r ackf or $1, 000, 000byas peci fieddat eandt opay$1, 000aday f orever yday' sdel ayi ncompl e t i ngi t .Adel ayscompl et i on f ort endays.  Answer :I f$1, 000i snotunr easonabl ei nt hel i ght oft heant i ci pat edl ossandt heact uall osst oB i s di fficul tt opr ove,A' spr omi sei snotat er m pr ovi di ngf orapenal t yandi t senf or cementi snot pr ecl udedongr oundsofpubl i cpol i cy . Byoper at i onofl aw  Avoi dabl econsequences  Def endantmovest ol i mi tdamages  I nbot hTor t sandCont r act s,apl ai nt i ffi snot ent i t l edt or ecoverdamagest hathecoul d haveavoi ded/mi ni mi z edbyt heuseof r easonabl eeffor torexpendi t ur e,wi t hout unduer i s k,bur denorhumi l i at i on,ei t her af t ert het or torknowl edget hatt hecont r act wi l lnotbeper f or medbyt heot herpar t y . Recoveryi snotpr ecl udedt ot heext entt hat t hepl ai nt i ffhasmader easonabl ebut unsuccessf uleffor t st oavoi d/mi ni mi zel oss, i nwhi cheventpl ai nt i ffcanal sor ecovert he cos tofmaki ngt heeffor t .

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 Offse t t i ngbenefit s  Whati fr epl acement /r epai rI NCREASE t he Pr oper t y’ sval ue??  Knownasbet t er ment ;e. g. ,f ul lr epl acement val ueexceedsdepr eci at edval ueofdamaged goods,orr epai rofpr oper t yaddsyear sofuse  Canbet akeni nt oaccountt or educeπ’ s r ecover...