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What type of contract would the doctrine of election of remedes not apply to?


Do you think it would be goods, real property, intellectual property, or services?

Why wouldn't it apply to one of these?

You would not have an election of remedies for a breach of a services contract. This is because you could not seek specific performance for services (an injunctive remedy) or a return of the services (restitution), only damages.

Under most contract breaches, a plaintiff can sue for either damages, thereby acknowledging the contract and recovering the difference between the contract price and the actual value of the subject of the contract, or rescission of the contract and the return of what has been paid under its provisions, restoring the plaintiff to the position he or she would occupy had the contract never been made & the defendant receives back what was provided (ie - deed to land, goods, etc.) to return the defendant to where he or she was before the contract.

However, if services have been provided, those can not be returned, whereas with goods, real property & IP, those can be returned. So - services contract.

The doctrine of election of remedies is not a contract remedy. It is related to damages.

Let's say someone induces you to enter into a contract where they enter into it knowing that they will never perform the contract. However, you rely on their representations and the contract and then lose money.

If you plead two causes of action, which are related to the same facts (i.e. breach of contract and fraud) and you prevail on both, you cannot recover double damages. You can only recover damages on one claim. Either contract or fraud (which is tort).

In some jurisdictions, you have to prove liability and damages in tort (Fraud) before you can get punitive damages.

If you choose fraud, then you might be entitled to punitive damages ontop of the actual damages you recover.

The point is, you would only be entitled to "benefit of the bargain" damages as to either fraud or contract.

Most lawyers would pick the fraud verdict because of punitives and the fact that fraud is not dischargeable in a personal chapter 7 bankruptcy case.

If there's an appeal and the fraud judgment is reversed, they may affirm the contract verdict and send it back for a judgment on the contract damages instead.

Does that answer your question?

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