Rethinking the Law of Contract Damages
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Rethinking the Law of Contract Damages

Victor P. Goldberg

In this series of chapters on contract damages issues, Victor P. Goldberg provides a framework for analyzing the problems that arise when determining damages, and applies it to case law in both the USA and the UK.
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Chapter 8: Rethinking Jacob Youngs v Kent

Victor P. Goldberg

Abstract

Jacob and Youngs v. Kent has long been a staple in Contracts casebooks. This chapter makes three contributions. First, it demonstrates that Cardozo broke no new ground. The law involving willfulness and substantial completion in building contracts had been around for half a century. The recognition of value of completion when the cost substantially exceeded the value was also well established. Second, it examines the record and concludes that Cardozo’s decision was justified. In particular it resolves two puzzles: (a) why did both the majority and dissent ignore the condition that the architect provide a certificate of completion; and (b) why didn’t Kent counterclaim for the full cost of completion? Finally, it considers how modern contract forms produced by the American Institute of Architects deal with the problem of deviations.

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