Contract 10 - Remedies

Question 1

What remedies are there for breach of contract?

Answer 1

• Compensatory damages 💵
• Specific Performance 🫵
• Injunction ✋

Question 2

What is the default approach to damages and 2 ways of calculating it?

Answer 2

Put innocent party in position they would’ve been in had the contract been performed
1. Expectation Interest 👉
2. Reliance Interest 👈

Question 3

What are the two methods of calculating the damages?

Answer 3

• Expectation used where profit is ascertainable - looks forwards to profit 👉
• Reliance used where profit is uncertain - looks back to costs incurred 👈

Question 4

What are the different ways of calculating expectation interest 👉

Answer 4

1. Cost of Cure: cost of substitute/remedial work required - C must act reasonably 👷‍♂️💊
2. Diminuition in value: difference in value between performance received & performance promised 🏠📉🏚️
3. Loss of Amenity: where loss is not in economic value, but still has value to them 💩

Question 5

What are the cases for calculating the expectation interest:
- Cost of Cure 👷‍♂️💊
- Diminution of value 🏠📉🏚️
- Loss of amenity 💩

Answer 5

💊 = Defective works
Must act reasonably, knocking down and rebuilding a house is not reasonable for aesthetic issues 🏠💥🏠
(💊&🏠🏚️ often same result)

💩
Cost of rectification out of proportion to benefit obtained.
Pool too shallow, 🏊😭🤫💰

Question 6

How is expectation interest calculated?

Answer 6

Expected profit + expenses incurred

Question 7

What is reliance interest and when used?
👈

Answer 7

Putting C in position they would’ve been in had contract never been entered into

• used where expectation damages are highly speculative 🤷‍♀️
• recover preparation expenses 🤓
• expenses prior to breach 👷💥

Question 8

What is the reliance interest?
👈

Answer 8

• Used when expectation is highly speculative. 🤷‍♀️
• Puts back into position would have been. 🔂
• only applies to wasted costs 🗑️

Question 9

What are the wasted cost requirements for reliance interest?
👈

Answer 9

• C would’ve recouped those expenses had contract been properly performed
  💰👀
• D must prove this wouldn’t be the case
  🤬💰👀

Question 10

What’s the case on reliance interest?
👈

Answer 10

⭐️
Star pulled out of film at last minute. Claimed for costs of director even though incurred before contract with star. ✅

🎥💃🤬💰 😎

Question 11

What’s the case on wasted costs for reliance interest?
👈🗑️

Answer 11

Landlord wrongly terminated mechanic Tenant’s lease early. T tried to sue for their fixed machinery left in the property. As T couldn’t have taken the machinery under the terms of the lease anyway, there was no loss

👷‍♂️🏭⚙️🎩🤬🤪😭

Question 12

What losses have special rules and exceptions?

Answer 12

1. Mental Distress🤪: damages not awarded unless a major object of contract 📝was to provide pleasure, relaxation & peace of mind 🧘‍♀️
   .
2. Loss of Reputation😎😭: damages not awarded unless an 🧑‍🍳 employment contract contains implied term of trust and confidence such that employer must carry out work in honest way 😇
   .
3. Loss of Chance🎲: recoverable in damages if lost chance is quantifiable in monetary terms & there was a real chance opportunity may have come to fruition (gameshow) 🎰

Question 13

Can damages be recovered on behalf of another?

Answer 13

No