Contract 10 - Remedies Flashcards
What remedies are there for breach of contract?
- Compensatory damages π΅
- Specific Performance π«΅
- Injunction β
What is the default approach to damages and 2 ways of calculating it?
Put innocent party in position they wouldβve been in had the contract been performed
1. Expectation Interest π
2. Reliance Interest π
What are the two methods of calculating the damages?
- Expectation used where profit is ascertainable - looks forwards to profit π
- Reliance used where profit is uncertain - looks back to costs incurred π
What are the different ways of calculating expectation interest π
- Cost of Cure: cost of substitute/remedial work required - C must act reasonably π·ββοΈπ
- Diminuition in value: difference in value between performance received & performance promised π πποΈ
- Loss of Amenity: where loss is not in economic value, but still has value to them π©
What are the cases for calculating the expectation interest:
- Cost of Cure π·ββοΈπ
- Diminution of value π πποΈ
- Loss of amenity π©
π = Defective works
Must act reasonably, knocking down and rebuilding a house is not reasonable for aesthetic issues π π₯π
(π&π ποΈ often same result)
π©
Cost of rectification out of proportion to benefit obtained.
Pool too shallow, πππ€«π°
How is expectation interest calculated?
Expected profit + expenses incurred
What is reliance interest and when used?
π
Putting C in position they wouldβve been in had contract never been entered into
- used where expectation damages are highly speculative π€·ββοΈ
- recover preparation expenses π€
- expenses prior to breach π·π₯
What is the reliance interest?
π
- Used when expectation is highly speculative. π€·ββοΈ
- Puts back into position would have been. π
- only applies to wasted costs ποΈ
What are the wasted cost requirements for reliance interest?
π
- C wouldβve recouped those expenses had contract been properly performed
π°π - D must prove this wouldnβt be the case
π€¬π°π
Whatβs the case on reliance interest?
π
βοΈ
Star pulled out of film at last minute. Claimed for costs of director even though incurred before contract with star. β
π₯ππ€¬π° π
Whatβs the case on wasted costs for reliance interest?
πποΈ
Landlord wrongly terminated mechanic Tenantβs lease early. T tried to sue for their fixed machinery left in the property. As T couldnβt have taken the machinery under the terms of the lease anyway, there was no loss
π·ββοΈπβοΈπ©π€¬π€ͺπ
What losses have special rules and exceptions?
-
Mental Distressπ€ͺ: damages not awarded unless a major object of contract πwas to provide pleasure, relaxation & peace of mind π§ββοΈ
. - Loss of Reputationππ: damages not awarded unless an π§βπ³ employment contract contains implied term of trust and confidence such that employer must carry out work in honest way π
. - Loss of Chanceπ²: recoverable in damages if lost chance is quantifiable in monetary terms & there was a real chance opportunity may have come to fruition (gameshow) π°
Can damages be recovered on behalf of another?
No