Modern-1e Video Question Only
Ch. 13: Breach and Remedies
Business Law Digital Video Library,
LawFlix Video #57: Midnight Run
13–10. Video Question Midnight Run
(a) In the video, Eddie (Joe Pantoliano) and Jack (Robert De Niro) negotiate a contract for Jack to find The Duke, a mob accountant who embezzled funds, and bring him back for trial. Assume that the contract is valid. If Jack breaches the contract by failing to bring in The Duke, what kinds of remedies, if any, can Eddie seek? Explain your answer.
Assuming that the contract is valid, Eddie has several choices of remedies he can pursue. He could seek to rescind (cancel) the contract and get back, as restitution, any funds that he paid in advance. Alternatively, he could seek compensatory damages (to cover direct losses and costs) and consequential damages (to cover foreseeable losses, such as the $450,000 bond). Of course, Eddie would have a duty to mitigate his damages by hiring another bounty hunter, for example, to bring in The Duke.
(b) Would the equitable remedy of specific performance be available to either Jack or Eddie in the event of a breach? Why or why not?
Specific performance is typically available only when the legal remedy (money damages) is inadequate. For example, courts will grant specific performance in contracts for the sale of land or the sale of unique goods. Courts normally will not grant specific performance as a remedy in breached contracts for personal services, as is the situation here. This is because to order a party to perform personal services against his or her will amounts to involuntary servitude.
(c) Now assume that the contract between Eddie and Jack is unenforceable. Nevertheless, Jack performs his side of the bargain (brings in The Duke). Can Jack recover from Eddie in this situation under the theory of quasi contract ? Why or why not?
Jack may have a remedy based on quasi contract, an equitable theory imposed by courts to obtain justice and prevent unjust enrichment in a situation in which no enforceable contract exists. Jack would have to show that he conveyed a benefit upon Eddie and did so with the expectation of being paid. He would also need to show that he did not volunteer to bring back The Duke, and that allowing Eddie to retain the benefit (of not forfeiting his bond) without paying for it would result in unjust enrichment. If Jack can show all of these elements, he may be able to recover.