24-Remedies Flashcards
What are the different types of remedy in contract law?
1) Legal remedies-damages or remedies for provision of goods etc.
2) Equitable remedies-discretionary
3) Statute remedy-specific remedies defined by statute
Nominal damages-definition and case
When no loss is incurred but there is breach.
Staniforth v Lyall (1830)
Facts: D did not load cargo onto boat in agreed time. Case was opened only to prove there was a termination of contract.
Staniforth v Lyall (1830)
Nominal damages
Facts: D did not load cargo onto boat in agreed time. Case was opened only to prove there was a termination of contract.
What are ‘Wrotham Park’ damages?
From the case of Wrotham Park v Parkside Homes (1974)
Damages awarded when C hasn’t necessarily incurred a loss but the court awards C more than nominal damages.
Wrotham Park v Parkside Homes (1974)
Established ‘Wrotham Park’ damages.
Facts: Without C permission D built houses on C land-courts awarded damages equal to what C would reasonably have accepted for D to build on their land.
What case established ‘Wrotham Park’ damages?
Wrotham Park v Parkside Homes (1974)
Facts: Without C permission D built houses on C land-courts awarded damages equal to what C would reasonably have accepted for D to build on their land.
What is it called when a court awards C damages that are more than nominal even if C hasn’t necessarily incurred a loss?
Wrotham Park damages
What case demonstrates speculative damages awarded for loss of chance?
Chaplin v Hicks (1911)
Facts: C was deprived of opportunity to take part in beauty contest and subsequent role as an actor due to a breach of contract. 12 out of 50 contestants were given work (24%) therefore C was awarded damages for missing out on a 24% chance of employment.
Chaplin v Hicks (1911)
Demonstrates speculative damages awarded for loss of chance.
Facts: C was deprived of opportunity to take part in beauty contest and subsequent role as an actor due to a breach of contract. 12 out of 50 contestants were given work (24%) therefore C was awarded damages for missing out on a 24% chance of employment.
What case demonstrates speculative damages awarded for loss of pleasurable amenity?
Ruxley Electronics v Forsyth (1996)
Facts: Swimming pool was built 10% more shallow than C asked-cost of fix was equal to original pool construction cost and therefore unsuitable-speculative damages awarded for loss of pleasurable amenity instead.
Ruxley Electronics v Forsyth (1996)
Speculative damages for loss of pleasurable amenity.
Facts: Swimming pool was built 10% more shallow than C asked-cost of fix was equal to original pool construction cost and therefore unsuitable-speculative damages awarded for loss of pleasurable amenity instead.
Which case set out the test for ‘remoteness’ in contract of law?
Hadley v Baxendale (1854)
Facts: Mill owner ordered crankshaft for his mill needed it urgently but did not tell the carrier it was urgent-C unsuccessfully tried to claim for this but carrier was unaware of the urgency to which it was needed so no claim allowed.
Hadley v Baxendale (1854)
Test for remoteness.
Facts: Mill owner ordered crankshaft for his mill needed it urgently but did not tell the carrier it was urgent-C unsuccessfully tried to claim for this but carrier was unaware of the urgency to which it was needed so no claim allowed.
What are the two parts to a test of remoteness in contract law?
1) Objective-what loss is a natural consequence of the breach?
2) Subjective-was such a loss foreseeable by any party to the contract?
What case further developed the test of remoteness in contract law?
Victoria Laundry v Newman Industries (1949)
Facts: Laundrette successfully sued for late delivery of essential boiler for regular business however failed for a second claim for loss of a special client which was unknown to D.
Victoria Laundry v Newman Industries (1949)
Regarding what test?
Further developed the test of remoteness.
Facts: Laundrette successfully sued for late delivery of essential boiler for regular business however failed for a second claim for loss of a special client which was unknown to D.
What case demonstrates that knowledge can be implied on basis of what reasonable person would have contemplated given the circumstances?
The Heron 2 (1969)
Facts: D was transporting cargo of sugar for C that arrived late which caused a loss of profit due to fluctuations in the price of sugar-D must have known that late delivery could affect C profits.
The Heron 2 (1969)
Knowledge based on what reasonable person wold have contemplated given the circumstances.
Facts: D was transporting cargo of sugar for C that arrived late which caused a loss of profit due to fluctuations in the price of sugar-D must have known that late delivery could affect C profits.
What case is an example of recoverable losses based on the difference between the goods/services required and what is actually provided?
Bence Graphics v Fasson UK (1996)
Facts: Vinyl film provided by D did not last the stated 5 years but only 2-C entitled to claim for recovery of losses incurred in correcting the issue.
Bence Graphics v Fasson UK (1996)
Recoverable losses based on the difference between goods/services required and what is actually provided.
Facts: Vinyl film provided by D did not last the stated 5 years but only 2-C entitled to claim for recovery of losses incurred in correcting the issue.
What cases demonstrate that where there is a market or lack thereof, damages will be the difference between contract price and market price?
1) Charter v Sullivan (1957)-High market demand-nominal damages.
2) Thompson Ltd v Robinson Gunmakers (1955)-Low demand-therefore damages for loss of profit.
What case demonstrates that for recoverable loss, if there is high enough demand for a product there may not necessarily be a claim for loss of profit on a cancelled order?
Charter v Sullivan (1957)
Facts: Hillman Minx cars were in higher demand than there were available, therefore finding a substitute buyer was easy-only nominal damages awarded.
Charter v Sullivan (1957)
For recoverable loss, if there is high enough demand for a product there may not necessarily be a claim for loss of profit on a cancelled order?
Facts: Hillman Minx cars were in higher demand than there were available, therefore finding a substitute buyer was easy-only nominal damages awarded.
What case demonstrates that if there is low or no market for a product and a substitute seller is hard to find in event of a cancelled order-then C may be entitled to damages for loss of profit?
Thompson Ltd v Robinson Gunmakers (1955)
Facts: Supply of Vanguard Standard cars outstripped demand therefore loss of profit occurred when D cancelled their order-damages awarded for loss of profit.
Thompson Ltd v Robinson Gunmakers (1955)
If there is low or no market for a product and a substitute seller is hard to find in event of a cancelled order-then C may be entitled to damages for loss of profit?
Facts: Supply of Vanguard Standard cars outstripped demand therefore loss of profit occurred when D cancelled their order-damages awarded for loss of profit.
Types of recoverable loss based on loss of a bargain?
1) Difference in cost of contract and actual goods provided-Bence Graphics v Fasson UK ltd (1996)
2) Difference between market value and price paid-Charter v Sullivan (1957)
Thompson Ltd v Robinson Gunmakers (1955)
3) Loss of profit that would have been made-Victoria Laundry v Newman (1949)
4) Loss of chance-Chaplin v Hicks (1911)
What case demonstrates recoverable losses for loss of future profit due to breach of D?
Victoria Laundry v Newman (1949)
Facts: Delay in delivering a boiler lead laundrette to lose out on profit.
Victoria Laundry v Newman (1949)
Regarding damages?
Recoverable losses due to loss of future profit.
Facts: Delay in delivering a boiler lead laundrette to lose out on profit.
What case to show recoverable losses for loss of chance?
Chaplin v Hicks (1911)
Facts: Actress missed out on chance to audition due to a breach of contract-claimed for loss of potential earnings. (not usually afforded in contract law-more negligence this case is an exception)
Chaplin v Hicks (1911)
Regarding damages?
Recoverable losses for a loss of chance.
Facts: Actress missed out on chance to audition due to a breach of contract-claimed for loss of potential earnings. (not usually afforded in contract law-more negligence this case is an exception)
What is reliance loss?
Example case?
Expenses incurred by a C who relied on a contract being performed. (like pre-contractual admin)
Anglia TV v Reed (1972)
Facts: Reed agreed to be main actor but withdrew-suitable placement could not be found-C claimed for loss of potential earnings and for expenses incurred before contract.
Expenses incurred by a C who relied on a contract being performed.
This is called?
Example case?
Reliance loss.
Anglia TV v Reed (1972)
Facts: Reed agreed to be main actor but withdrew-suitable placement could not be found-C claimed for loss of potential earnings and for expenses incurred before contract.
Restitution definition
Money paid to D in advance of contract is simply returned.
Money paid to D in advance of contract is simply returned.
Restitution
What case demonstrates C should mitigate the loss?
Westinghouse v Underground Electric Railways (1912)
Facts: C bought goods to replace the defective goods delivered by D-they were more efficient-this was considered mitigation of loss and altered damages owed accordingly.
Westinghouse v Underground Electric Railways (1912)
C duty to mitigate the loss.
Facts: C bought goods to replace the defective goods delivered by D-they were more efficient-this was considered mitigation of loss and altered damages owed accordingly.
What is the case for liquidated damages?
Dunlop Tyres v New Garage (1914)
Facts: Term in contract said that if New Garage sold tyres for less than retail there would be a fee per tyre. Clause was for liquidated damage and not a penalty clause.
Dunlop Tyres v New Garage (1914)
Liquidated damages as a pose to penalty fee.
Facts: Term in contract said that if New Garage sold tyres for less than retail there would be a fee per tyre. Clause was for liquidated damage and not a penalty clause.
What is the modern case for showing a penalty?
How does it set out a penalty?
Cavendish Square v Talal Makdessi (2015)
A penalty is non-exaggerated amount and to protect legitimate interest of party.
Facts: Middle Eastern media business for sale. Term in contract meant seller could not compete with buyer under threat of forced sale of shares at reduced price.
Cavendish Square v Talal Makdessi (2015)
A penalty is a non-exaggerated amount and to protect the legitimate interests of the party
Facts: Middle Eastern media business for sale. Term in contract meant seller could not compete with buyer under threat of forced sale of shares at reduced price.
What case shows that equitable remedies are not available for contracts of personal service and employment?
Page One Records v Britton (1967)
Facts: A music band agreed Page One would be their manager with a clause that they would not employ a new manager for 5 years-relationship broke down and they wanted a new manager and Page One’s attempts to put an injunction on this failed.
Page One Records v Britton (1967)
Equitable remedies are not available for contracts of personal service or employment.
Facts: A music band agreed Page One would be their manager with a clause that they would not employ a new manager for 5 years-relationship broke down and they wanted a new manager and Page One’s attempts to put an injunction on this failed.
What case shows that equitable remedy of specific performance is not available where doing so would make a party bankrupt?
Airport Industrial v Heathrow Airport (2015)
Facts: Tenant was contractually obliged to build a car park but couldn’t do it to C’s standards because it would lead to liquidation-court could not enforce specific performance as this was seen as unjust.
Airport Industrial v Heathrow Airport (2015)
Equitable remedy of specific performance not available where doing so would make a party bankrupt.
Facts: Tenant was contractually obliged to build a car park but couldn’t do it to C’s standards because it would lead to liquidation-court could not enforce specific performance as this was seen as unjust.
In what circumstances are equitable remedies not usually awarded?
1) Where damages would be an adequate remedy.
2) In contracts for personal services-Page One Record v Britton (1967)
What case considers the principle set out in The Heron 2 that of a link between reasonable persons knowledge and contemplation of risk?
Parsons v Ingham (1978)
Facts: Pig nuts that went mouldy and killed pigs-was considered that not airing the nuts was likely to cause harm and was within contemplation of D.
Parsons v Ingham (1978)
Principle: further develops principle set out in The Heron 2-what is in contemplation of D.
Facts: Pig nuts that went mouldy and killed pigs-was considered that not airing the nuts was likely to cause harm and was within contemplation of D.
What case summarises the law on causation and remoteness of damage in remedies for contract law?
Wellesley Partners v Withers (2015)
Facts: “if at time of making contract, reasonable person would have known damage of that kind would lead to breach”
Wellesley Partners v Withers (2015)
Example of: Summarises the current law on causation and remoteness of damage regarding remedies in contract law.
Facts: “if at time of making contract, reasonable person would have known damage of that kind would lead to breach”
What are liquidated damages?
Case?
Where amount has been fixed by a term in contract-must be accurate and reflect level of damage.
Dunlop Tyres v New Garage (1914)
How does liquidated damage differ from a penalty?
A penalty is unenforceable
because it is seen as an exaggerated sum to deter one party from breaching the contract.
