Written by attorneys · grounded in primary & secondary sources — see below
An undesirable outcome of a risk. The disappearance or diminution of value, usually in an unexpected or relatively unpredictable way. The failure to maintain possession of a thing.
Sources & Authorities· 40 primary sources
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
How it applies
Common Examples
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M'Naghten Self-Control Claim
Lila Lin stabbed a neighbor during a psychotic episode. At trial she proved a disease of the mind that caused a defect of reason. She also showed she could not stop herself from acting. The court rejected the defense because loss of self-control alone does not satisfy the M'Naghten test.
Unmarketable Title Refusal
Lamar Lewis contracted to sell land to Lily Lopez. A recorded easement appeared after signing. Lopez refused to close. Because the title carried an encumbrance creating reasonable doubt, the court held it unmarketable and allowed Lopez to rescind and recover her deposit.
Initial Disclosure Computation
Lucas Lee sued for personal injuries. In his Rule 26(a)(1) disclosures he listed medical expenses and lost wages. He attached the underlying bills and employment records. The court accepted the computation because it rested on the required evidentiary materials.
Corporate Opportunity Disclaimer
Leah Lamb, a corporate officer, learned of a new product line. She disclosed the opportunity to the board. Qualified directors voted to disclaim the corporation's interest. The court held that Lamb could pursue the opportunity without liability for any resulting corporate loss.
Total Breach Determination
Linden Logistics failed to deliver components for three months. The buyer showed that the delay substantially impaired the value of the remaining contract. The court allowed recovery of damages for all remaining rights to performance because the breach met the total-breach standard.
Landlord Damages Recovery
Lighthouse Shipping abandoned leased premises. The landlord relet at a lower rent. The court permitted recovery of the difference in rent plus other damages to the extent allowed under the governing section on remedies.
Common questions
Frequently Asked
6
Does loss of self-control alone support an insanity defense under traditional M'Naghten?+
No. A loss of self-control caused by mental illness, standing alone, does not provide a defense under the M'Naghten test. The defendant must also lack capacity to know the nature and quality of the act or that it was wrong.
When may a buyer refuse to close because of title problems?+
A buyer may refuse to close and may rescind or recover damages if the title is unmarketable. Marketable title is free from reasonable doubt and acceptable to a reasonably prudent purchaser with full knowledge of the facts.
What must a party disclose about damages under Rule 26(a)(1)(A)(iii)?
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A party must disclose a computation of each category of damages claimed and must make available the documents or other evidentiary material on which each computation is based, including materials bearing on the nature and extent of injuries suffered.
When may a director or officer take a corporate opportunity without liability?+
A director or officer may take the opportunity without liability if the opportunity is first brought to the corporation's attention and qualified directors disclaim the corporation's interest under the procedures of section 8.62, or if the corporation rejects the opportunity after full disclosure.
When does a breach by non-performance give rise to a claim for total breach?+
A breach by non-performance gives rise to a claim for total breach only if it so substantially impairs the value of the contract to the injured party at the time of the breach that it is just in the circumstances to allow recovery of damages based on all remaining rights to performance.
What remedies are available to a landlord after a tenant's breach?+
A landlord may recover damages to the extent prescribed in the governing remedies section after a tenant's breach of a lease.
and expenses of the collective trust are shared by the constituent trusts in proportion to their contribution. By this plan, diversification of risk and economy of management can be…
damages
. The District Court dismissed the complaint on the ground that the agents were immune from suit. The Court of Appeals affirmed on the alternative ground that no cause of action was alleged.…
TortsNegligence · Liability for acts of othersUBEFoundational