Contract - Damages Flashcards
The aim of damages is to but the claimant in the position they would have been in if the contract had been properly performed
Robinson v Harman
Damages takes account of loss of opportunity
Chaplin v Hicks
Damages takes account of loss of amenity
Ruxley Electronics v Forsyth
Loss of pleasure cannot normally be claimed for
Addis v Gramophone
If enjoyment was an important part of the contract, this can be claimed for
Jarvis v Swan tours
If you cant find expectation loss, consider reliance loss. Aim is to return the claimant to the position they were in before the contract
Anglia TV v Reed
Loss suffered cannot be too remote (must be in reasonable contemplation). it must either:
1- follow from the ordinary course of things; or
2- If a special situation leads to the loss, it must be in the knowledge of both parties
Hadley v Baxendale
Ordinary loss of profit is within reasonable contemplation. Loss from especially lucrative contracts is not
Victoria Laundry
If the type of loss is foreseeable, the defendant will be liable for all loss stemming from it, even if greater than expected
Persons (Livestock) v Uttley Ingham
Ordinary profit is different loss to high profit loss from a specially lucrative contract
Brown v KMR Services
The claimant has a duty to mitigate against his loss
British Westinghouse
The aim of damages is to compensate the claimant. Although loss is calculated at the time of damage, this shouldn’t get in the way of damages’ aim
The Golden Victory
Whether a clause is a specified damages clause or penalty clause will depend on factors in which cases?
Dunlop Tyres v New Garage
Cavendish Square Holdings
Cavendish Square Holdings/ Dunlop Criteria?
Is the ‘agreed amount’ extravagant or unreasonable?
Are the parties of equal bargaining powers?
Is there a commercial justification?
Was deterrence the primary purpose?
Is a single sum owed on the occurrence of one of a number of events?
