Compensatory damages following a breach

Question 1

what is the purpose of damages for a breach

Answer 1

put the innocent party into the financial position they would have been in had the contract been performed.

Question 2

what are the 3 ways of identifying the relevant expectation loss?

Answer 2

consequential loss- loss from breach
difference in value- look at difference between expected gain vs what they actually got.
cost of cure- cost of fixing contract

Question 3

how are damages awarded if it too difficult to work out the value of the expectation interest.

Answer 3

wasted expenditure/ protecting reliance interests

Question 4

what is a restitution interest based damage

Answer 4

claimant can recover benefits conferred on the defendant

Question 5

non- pecuniary loss

Answer 5

recovering for inconvenience and discomfort. (NON FINANCIAL)

Question 6

punitive damages

Answer 6

extremely rare.
- punish wrongdoer fro action recklessly

Question 7

what are the 3 limitations when recovering damages

Answer 7

remoteness
mitigation
contributory negligence

Question 8

what is remoteness

Answer 8

limiting liability to reflect the risk of loss that appeared to be accepted at the time of entering the contract

Question 9

if the actual breach harms the reputation, which causes financial loss, can loss be recoverable

Answer 9

yes.

Question 10

Farley v skinner

Answer 10

1. seeking damages for loss of enjoyment or other mental distress can be claimed where it is a major or important object of the contract

Question 11

what are the 4 different types of damages available for non-financial loss

Answer 11

1. pain and suffering - available as a consequence of breach- godley v Perry
2. physical inconvenience- consequence of breach- Bailey v bullock
3. harmed reputation resulting from th breach- only if It results in financial loss- Malik v BCCI
4. loss of enjoyment/ mental distress- if freedom from distress is an important object of the contract- Farley v Skinner

Question 12

Addis v Gramophone

Answer 12

harmed reputation and injured feeling from the manner of a breach cannot be claimable in damages

Question 13

can a business claim damages for mental distress

Answer 13

no

Question 14

what does causation have to do with claiming damages

Answer 14

breach must have been the actual cause of the loss
- an intervening act can break the chain of causation

Question 15

what is the reasonable contemplation test.

Answer 15

if the loss was reasonably foreseeable it means the parties knew there was a risk of a breach causing such a loss.

Question 16

Hadley v baxendale

Answer 16

basic reasonable contemplation test

Question 17

Victoria laundry v man industries

Answer 17

loss must be obvious and ordinary otherwise it is too remote

Question 18

Heron ii

Answer 18

at the time of the contract, the loss from a potential breach must have been contemplate as quite likely or not unlikely.

Question 19

what is mitigation

Answer 19

claimant cannot recover damages in respect of losses attributable to his failure to reduce the loss.
duty to mitigate–
1. reasonable steps to minimise loss
2. not unreasonably increase the loss.

Question 20

what is specific performance

Answer 20

court order to perform contract
- damages must be inadequate to protect expectation interest
damages ca be inadequate where the loss is either difficult to quantify or prove- adderly v Dixon

Question 21

what is an injunction

Answer 21

order to stop party doing something they promised not to.

Question 22

what are the two types of injunctions

Answer 22

1. prohibitory injunctions- used to stop breach by enforcing obligation
2. mandatory injunction are used after the breach- removal of something

Question 23

what is restitution for unjust enrichment

Answer 23

reversing the benefit gained by the other party
1. a party receives a benefit
2. the enrichment was at the expense of the claimant
3. it is unjust for the enriched party to keep the benefit.

Question 24

if a contract exists is it possible tp rely on unjust enrichment

Answer 24

no.
contract is void or never came into existence means unjust enrichment restitution can apply

Question 25

what must there be a total failure of for unjust enrichment

Answer 25

consideration

Question 26

account of profits

Answer 26

general rule is that claiming profit other party made from breach is not allowed.
attorney v Blake redeveloped it to mean that it was possible if other remedies are inadequate, there is a legitimate interest taking it away and it should be equivalent to a fiduciary breach