Announcements Class 5

2. Announcements Class 5 Web-based lecture (obviously) Case catch up

3. Parker v. Twentieth Century Fox Film Corp. MITIGATION?

4. Parker v. Twentieth Century Fox Film Corp.

5. Peevyhouse v. Garland Coal & Mining Co. • K terms: • 5 year lease for strip mining • Restore land at completion of term • K Performance: • 5 years of strip mining • Harm/Injury: • Restorative work incomplete • Remedy?

6. Peevyhouse v. Garland Coal & Mining Co. • Cost of Completion v. Diminution of Value • Cost of Completion = traditional approach Unless • Breached provision was incidental to the K and • Economic benefit of performance substantially < cost of performance

7. Peevyhouse v. Garland Coal & Mining Co. • For class on Monday, prepare your best argument damages as either: • Cost of completion OR • diminution in value

8. Kenford v. County of Erie Limitations on Special Damages: 2 views Locke v. US

9. Kenford v. County of Erie Limitations on Special Damages: 2 views Locke v. US “Difficulty of ascertainment is not to be confused with right of recovery” If a reasonable probability of damage can be clearly established, uncertainty as to the amount will not preclude recovery.” “[D]amages may not be merely speculative, possible or imaginary, but must be reasonably certain and directly traceable to the breach, not remote or the result of other intervening causes.” AND those damages must be demonstrable as “fairly within the contemplation of the parties to the contract at the time that it was made.”

10. Kenford v. County of Erie How to “Push” and “Pull” facts Locke v. US RECOVERY NO RECOVERY

11. Broken shaft Delayed shipping Closed mill as a result of the delay WHAT IS THE POINT OF THIS CASE?

13. Damages 2.0

14. Damages 2.0; Problem #1(non-UCC) ♦ Why is the LCB amount 0? Because it was paid before the breach and the costs were anticipated in the K. ♦ Value Received here is the amount already paid by the Buyer AND the salvage value of what was sold.