American Law Cafe

Contract Damages Recap 101: The Price of a Broken Promise


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🎧 Episode Summary:
Welcome to today’s episode, where we dive deep into the remedies available when a contract goes sideways. This essential 1L review breaks down the major types of contract damages and explains not only what they are—but why courts use them.

We begin by unpacking the “Big Three”: expectation, reliance, and restitution damages, using the unforgettable case of Sullivan v. O’Connor to show how each measure works in practice. Then, we turn to consequential damages, where Hadley v. Baxendale still reigns as the guiding star for foreseeability in breach-of-contract claims.

We’ll explore liquidated damages, when they’re enforceable, and when they cross the line into unenforceable penalties—as in the Sprint early termination fee case. You’ll also hear how nominal, emotional, and punitive damages function at the edges of contract law, and why courts rarely award anything that smells like punishment in a breach-of-contract case.

From disfigured noses to delayed crankshafts, this episode covers the full spectrum of contract damages—complete with case law, Restatement rules, and practical takeaways to help you tackle hypos with confidence.

Whether you're prepping for your Contracts final or brushing up on remedies, this episode is your go-to crash course. Thanks for joining us at the American Law Cafe.

🎶 Intro Music: "In Jazz Short" by moodmode / Vlad Krotov
📚 Content Created by Heather Mora
🎙️ Hosted on Buzzsprout: https://www.buzzsprout.com/2429305

 Introductory Music for American Law Cafe. In Jazz Short by moodmode / Vlad Krotov. 

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🎶 Intro Music: "In Jazz Short" by moodmode / Vlad Krotov
📚 Content Created by Heather Mora
🎙️ Hosted on Buzzsprout: https://www.buzzsprout.com/2429305

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