i. Jacob & Young v.

Kent (1921): Redding pipe case

(a) Not a material breach
(b) Substantial performance completed except for a
minor/trivial fault
(c) Breach was unintentional and inadvertent
(d) Different standard for small chattels and buildings or
skyscrapers

UCC Interpretation of Parol Evidence:

Frigaliment:
The court allowed:
Dictionary definition
USDA definition
Trade Usage in Industry
Inferences from price
Course of performance
Testimony by parties as to what was meant

B. Expectation Damages:
1. Standard Formula:
a. Damage recover is equal to loss by reason of other party’s default plus
expenses incurred in fulfilling own obligations.
b. UCC 2-712: buyer may cover failure of seller by purchasing goods at market
price, and seller will be responsible for price difference if such purchase
is made reasonably promptly and in good faith.
c. UCC 2-706: seller may sell goods to an alternate purchase if buyer breaches
and buyer is responsible for price difference.
d. Restatement §347: Measure of Damages in General
i. Subject to the limitations stated in 350-53, the injured party has a
right to damages based on his expectation interest as
measured by
(a) the loss in the value to him of the other party’s
performance caused by its failure or deficiency, plus
(b) any other loss, including incidental or consequential loss,
caused by the breach, less
(c) any cost or other loss that he has avoided by not having to
perform.
2. General Case Law:
Kemp v. Gannett (): P contractor agreed to list house with D (realtor) on condition
that if house did not sell in 90 days, D would buy it. D breached. P sold
the house a year later. Court held that P was entitled to difference
between contract price and the market value on date of breach. P
 should be in same position he would have been w/o breach. P also
recovered for taxes and utilities caused by delay of sale (reliance).
a. Handicapped Children’s Education Board v. Lukaszewski (1983): D, a
teacher, breached her contract with Board. D was forced to find a
replacement. The only choice was a more qualified candidate whom
they had to pay more. Court held that Board is able to recover the
difference in price of the contracts because P breached--her breach
forced them to hire whoever was available.