6): Causation and Remoteness

Question 1

What are the limitations on claiming damages?

Answer 1

Causation – There must be a direct link between the breach and the loss.

Remoteness – Losses that are too remote cannot be recovered.

Mitigation – The claimant must take reasonable steps to reduce their loss.

Question 2

What is the principle of causation in contract law?

Answer 2

A party is only liable for losses directly caused by their breach of contract.

Question 3

When can intervening acts break the chain of causation?

Answer 3

Intervening acts may break the chain if they are reasonably foreseeable.

Question 4

Does the presence of another contributing cause prevent liability for a breach of contract?

Answer 4

No, as long as the breach remains a substantial cause of the loss.

Question 5

What is mitigation in contract law?

Answer 5

The innocent party cannot recover for losses they could have reasonably avoided by taking appropriate steps.