Notes

In order to get damages, you need liability.

We're not penalizing or punishing the person. What we're doing is putting the person who was breached who was aggrieved in the same place they were before

Mitigate -> Have to go out and try and find another person to buy the bicycle
(I was going to pay 50 and now other person is going to pay 40, lost 10 dollars) Can sue you for 10 dollars. Same place where he would have been if contract would have been performed. Must mitigate losses if you are the aggreived party. Once the contract is breached right you have to communicate as soon as possible, and you have to use reasonable commercial meetings.

Damages must be proximate. Damages that are sustained is related to the cause. By me not selling you bycilce, this is a sustainable loss. When you sold bycilce to other person, there is a loss. Cause and relationship.

Damages must be foreseeable. Since you have to find another person and going to have to sell it for less, it's forseeable.

Damages must be certain. Damages must be proved not speculated.

Incidental: Have to mitigate the bike. Only person who wants to buy it is far. Have to take a cab ride to reach him. You wouldn't have to pay for the cab is bike was originally sold. Can sue for taxi ride as well -> Incidental (side of the original purpose)

Sell bike to the second person for $50, same amount to the first person but they didn't show up -> Nominal. You didn't sustain a loss. If it's more than or same the amount, there is still a breach of contrcat for the person who didnt show up but the damages are nominal. You get a judgment for $1.

Consquential: Sell bike to someone, do you have any reason why the buyer wants that bike -> No. Suppose the person wants to buy bike because they want to start a food delivery service. Seller refuses to sell bike. Buyer is now the aggrieved party. Buyer has to mitigate. If buyer pays more for second bike, he can recover the additional amount. Buyer can also recover incidental expenses. Seller has special information of what's going to happen if they breach the obligtion.

Revenues - Expenses = Profits. Consequental damages: The person who wanted to buy bike lost 2 weeks of profit. Take place when the seller has specific information, seller is responsilbe for the damage.

If you don't mitigate, it's as though you mitigated regardless in terms of getting your damages. If you don't mitigate it's held against you. If I don't sell my bike to you, you have to look for another bike to buy. Suppose there would have been another bike to buy for $40, og was $50. Would the person have sustained a loss. No, the person would sue for nominal damages. Suppose you never went out and mitigated. Person would not be able to prove that they lost $50. if they had mitiaged, they would have only sustained a loss of $10.

Compensatory would be if the buyer had purchased a different bicycle for a higher cost. The incidental would be like if they had to take a cab, or something correct and consequential would be the profits lost until time of mitigation.

basically being how liable for profit loss of companies.

if you have special information you're responsible for the forseeable consequences of that special information. if you were given information that special information, you are responsible for the lost profits that occur as a result of the special information that you have

If you went out and find a bike for $60. Lost $10. If I could prove as the seller of the bike that if you had gone out and found another bike you would have found another. You would have found another bike for $60, and you would have. Therefore you would have only lost $10 you're limited in your damages to the amount that you would have lost.

A contract with you to employ you for $60,000. Seller breaches the contract and terminates you. Can you sue for $60,000? No, you need to find a different job. Suppose you find another job for $40,000. You can sue seller for $20,000. If you dodn't look for another job, seller could show court the jobs. Then you can't sue for $60,000. Only the amount that you would have lost, only obligated for seller to give you $20,000. If you found another job for $70,000, you would not be entitled to compensatory damages.

if you had a if you give somebody special information, you're entitled to compensatory and consequential. No special information, you're only entitled to compensatory.