Saturday, September 13, 2008

Three damage interests

Fuller & Perdue (a.k.a. the Gods of contract damages) give us the three damage interests:
  1. expectation interest, where the court attempts to put the promisee in the position in which the promisee would have been had the promise been performed
    --"the benefit of the bargain"
    --generally used today in actions founded on promises that are enforceable
  2. reliance interest, attempts to put the promisee back in the position in which the promisee would have been in had the promise not been made
    --if the promisee changes his/her position to his/her detriment in reliance on the promise, as if by incurring expenses in performing or preparing to perform
    --less generous than expectation interest
  3. restitution interest, attempts to put the promisor back in the position he/she would have been in had the promise not been made
    --less generous than exp. int. or rel. int.
    --if the promisee conferred a benefit on the promisor in the course of the transaction

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