Contract 10 - Remedies Flashcards

1
Q

What remedies are there for breach of contract?

A
  • Compensatory damages πŸ’΅
  • Specific Performance 🫡
  • Injunction βœ‹
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2
Q

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

A

Put innocent party in position they would’ve been in had the contract been performed
1. Expectation Interest πŸ‘‰
2. Reliance Interest πŸ‘ˆ

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3
Q

What are the two methods of calculating the damages?

A
  • Expectation used where profit is ascertainable - looks forwards to profit πŸ‘‰
  • Reliance used where profit is uncertain - looks back to costs incurred πŸ‘ˆ
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4
Q

What are the different ways of calculating expectation interest πŸ‘‰

A
  1. Cost of Cure: cost of substitute/remedial work required - C must act reasonably πŸ‘·β€β™‚οΈπŸ’Š
  2. Diminuition in value: difference in value between performance received & performance promised πŸ πŸ“‰πŸšοΈ
  3. Loss of Amenity: where loss is not in economic value, but still has value to them πŸ’©
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5
Q

What are the cases for calculating the expectation interest:
- Cost of Cure πŸ‘·β€β™‚οΈπŸ’Š
- Diminution of value πŸ πŸ“‰πŸšοΈ
- Loss of amenity πŸ’©

A

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

πŸ’©
Cost of rectification out of proportion to benefit obtained.
Pool too shallow, πŸŠπŸ˜­πŸ€«πŸ’°

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6
Q

How is expectation interest calculated?

A

Expected profit + expenses incurred

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7
Q

What is reliance interest and when used?
πŸ‘ˆ

A

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

  • used where expectation damages are highly speculative πŸ€·β€β™€οΈ
  • recover preparation expenses πŸ€“
  • expenses prior to breach πŸ‘·πŸ’₯
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8
Q

What is the reliance interest?
πŸ‘ˆ

A
  • Used when expectation is highly speculative. πŸ€·β€β™€οΈ
  • Puts back into position would have been. πŸ”‚
  • only applies to wasted costs πŸ—‘οΈ
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9
Q

What are the wasted cost requirements for reliance interest?
πŸ‘ˆ

A
  • C would’ve recouped those expenses had contract been properly performed
    πŸ’°πŸ‘€
  • D must prove this wouldn’t be the case
    πŸ€¬πŸ’°πŸ‘€
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10
Q

What’s the case on reliance interest?
πŸ‘ˆ

A

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

πŸŽ₯πŸ’ƒπŸ€¬πŸ’° 😎

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11
Q

What’s the case on wasted costs for reliance interest?
πŸ‘ˆπŸ—‘οΈ

A

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

πŸ‘·β€β™‚οΈπŸ­βš™οΈπŸŽ©πŸ€¬πŸ€ͺ😭

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12
Q

What losses have special rules and exceptions?

A
  1. Mental DistressπŸ€ͺ: damages not awarded unless a major object of contract πŸ“was to provide pleasure, relaxation & peace of mind πŸ§˜β€β™€οΈ
    .
  2. Loss of Reputation😎😭: damages not awarded unless an πŸ§‘β€πŸ³ employment contract contains implied term of trust and confidence such that employer must carry out work in honest way πŸ˜‡
    .
  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) 🎰
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13
Q

Can damages be recovered on behalf of another?

A

No

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