Contract Law Second Term - Remedies Flashcards

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1
Q

What are the requirements for C to recover supplied goods/services?

A

No total failure requirement; contract price may be ceiling but may be allowed more (Loddar v Slowey)

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1
Q

What did Fuller and Perdue include in reliance interest?

A

Loss of opportunity

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1
Q

Workers Trust v Dojap Investments

A

Deposit 25%, custom 10%; not allowed to enforce more than proved losses from BoC

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2
Q

Knott v Bolton

A

Dream home; economic purpose so no damages

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2
Q

Holden Ltd v Bostock

A

Spending on advertising

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3
Q

Who makes a distinction between restitutionary damages and disgorgement damages?

A

Professor Edelman

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3
Q

Victoria Laundry v Newman Industries

A

Boiler, 5 months

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4
Q

What are the two limbs of Hadley v Baxendale for remoteness?

A

That which flowed naturally from BoC, or in contemplation of parties (actual knowledge)

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5
Q

What case suggested Hoffman supplemented Hadley?

A

The Sylvia

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6
Q

Jarvis v Swans Tours

A

House party

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6
Q

C & P Haulage v Middleton

A

Garage, wrongly ejected but denied reliance

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7
Q

Dunlop Pneumatic v New Garage

A

Agreed damages; not penalty, which means not ‘extravagant and unconscionable’

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8
Q

Who argued SP should be a general right?

A

Schwartz

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8
Q

Supershield v Siemens Building Technologies

A

Ball valve, lever; Hoffman widened Hadley so that losses too remote under Hadley are not by assumption of a contractual duty

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9
Q

What two sources expressly dictate when cost of cure and when diminution?

A

Building contracts and statute

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9
Q

Farley v Skinner (No.2)

A

Quiet weekends; subjective test

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9
Q

Why do Bingham and Walker criticise the flexible approach to date of assessment in Nippon Yusen?

A

Encourages D to delay settlement to take into account subsequent events

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9
Q

What three things can be taken from Dunlop Pneumatic on penalty clauses?

A

Labels are not decisive, need to be proportionality between serious of breach and sum and reasonableness of estimate at formation

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9
Q

Why did McKendrick not think The Sylvia’s application of Hoffman in The Achilleas was correct?

A

Hoffman thought Hadley to have a ‘high degree of indeterminacy’, so trying to replace, not supplement it

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11
Q

Ruxley Electronics v Forsyth

A

Shallow pool

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12
Q

What interest does contract law mainly try to protect?

A

Expectation

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14
Q

Parsons (Livestock) v Uttley Ingham

A

Food storage hopper

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15
Q

MFM Restaurants v Fish & Co Restaurants

A

CoA of Singapore only considered Hoffman’s Achilleas in as far as it fit under limbs of Hadley

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16
Q

S.18 Landlord and Tenant Act 1927 on damages

A

Expressly stipulate diminution

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16
Q

Photo Production v Securicor Transport

A

Compensatory principle of adjudging penalty clauses

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17
Q

Hamilton Jones v Davis & Snape

A

Tunisia

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17
Q

Makdessi v Cavendish Square on penalty clauses

A

blatant interference with freedom of contract

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18
Q

According to Edelman, how could Blake and Wrotham Park be distinguished?

A

Blake = disgorgement, Wrotham Park = restitutionary.

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19
Q

What were the limitations given by Farley on Watts v Morrow?

A

Change cannot apply to commercial claimants, non-pecuniary purpose must be important, only nominal damages (£10,000 limit, with Ruxley) and only when no alternative measure

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20
Q

Malins v Freeman

A

D drunk; no SP

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20
Q

What case suggested Hoffman widened Hadley?

A

Supershield

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21
Q

Howe v Smith

A

No recovery of deposit

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22
Q

Stansbie v Troman

A

Builders; front door

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23
Q

What do both Wrotham Park and A-G v Blake use in account of profits?

A

Hypothetical bargain for sale of right, but fallacy because C may not have contracted at any price.

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23
Q

Alder v Moore

A

Insurance, £500, no BoC

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23
Q

What case shows the use of s.1(1) and 4 of the LR(CN)A 1945?

A

Barclays v Fairclough

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24
Q

Golden Strait v Nippon Yusen

A

Gulf war

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24
Q

S.236 Trade Union and Labour Relations (Consolidation) Act 1992

A

No compulsion to work

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25
Q

Robinson v Harman

A

‘To be placed in the same situation, with respect to damages, as if the contract had been performed’

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25
Q

Lamm v Shingleton

A

Improperly interred corpses

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26
Q

Johnson v Johnson

A

Shares; £40,000, £140,000

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27
Q

Hadley v Baxendale

A

Crank shaft mill

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28
Q

Hyundai Shipbuilding v Papadopoulos

A

No recovery of part-payment if C has incurred reliance expenditure without express contractual stipulation

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28
Q

Monarch Steamship v A/B Karishamns

A

Act of god breaks chain of causation

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29
Q

What case shows an award of non-pecuniary loss higher than that suggests in Farley and Ruxley?

A

Hamilton Jones

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30
Q

Johnson v Agnew

A

Assessment as date of BoC unless injustice

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30
Q

Beswick v Beswick

A

No other remedy but SP; uncle’s wife

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30
Q

De Francesco v Barnum (No.1)

A

No SP of personal service because of enslavement

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31
Q

Negative duty to avoid worsening losses by spending on advertising (reasonable)

A

Holden Ltd v Bostock

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32
Q

Lordsvale Finance v Bank of Zambia

A

Commercial justification for agreed damages

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32
Q

The Soholt

A

Renegotiate, positive duty

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33
Q

What Lord and in what case argued that reasonableness for mitigation is part of a broader principle?

A

Lord Lloyd in Ruxley v Forsyth –> Swimming pool

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34
Q

British Westinghouse v Underground Electric

A

‘Ordinarily take in the course of his business’ for mitigation

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35
Q

Who states reliance interest is not a contractual interest at all?

A

Friedmann

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37
Q

Mertens v Home Freeholds

A

Cost of cure for building contracts as may be aesthetic

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38
Q

Union Eagle v Golden Achievement

A

Deposit 10%, custom 10%, 10 minutes late; allowed to enforce

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39
Q

What case qualified the limbs in Hadley?

A

The Heron II

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40
Q

Yerton v Eastwoods Froy

A

Substitute performance, positive duty

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40
Q

The Heron II

A

Two qualifications on Hadley: type, not extent, and serious possibility of loss, not just slight

42
Q

Why was it argued in Panatown that the promisee should be able to claim?

A

Legal black hole of terms not in deed which were in main contract

43
Q

What is the two stage assessment to damages?

A

Prima facie measure then any limitations

44
Q

Why was diminution given in Tito v Waddell?

A

Huge difference in price, and islanders had left

44
Q

Giles & Co v Morris

A

‘significant reluctance’ for SP of personal service, but not absolute (Megarry J)

46
Q

If there is loss of performance to a third party, in what case and how was it suggested the promisee could claim?

A

McAlpine v Panatown: duty of care, Millett and Goff on broad ground

47
Q

When will C usually use reliance?

A

Can’t prove loss of profits, wants damages for pre-contractual expenditure and they have entered a losing bargain

48
Q

What was the narrow approach of Lloyd in Forsyth?

A

Link with pleasurable amenity cases

50
Q

Why was cost of cure not given in Forsyth?

A

Unreasonable as cost of repair was high and work not a benefit

51
Q

Why did the court not allow the instalment to be forfeited in Johnson v Johnson?

A

Flavour of a penalty clause

52
Q

What did they recover in Jarvis v Swans Tours?

A

Payment and compensation for distress

54
Q

What case gives the basic rule for expectation damages?

A

Robinson v Harman

56
Q

What interest did Fuller and Perdue champion?

A

Reliance interest

57
Q

Lambert v Lewis

A

Coupled, knew lock mechanism was broken

58
Q

Walters v Morgan

A

Rushed D because of ignorance; no SP

59
Q

Loddar v Slowey

A

May be allowed in excess of contract price under restitution interest for goods/services supplied

61
Q

Diesen v Samson

A

Photographer for wedding event

63
Q

Farley on harm

A

Harm includes aircraft noise but not mere disappointment

64
Q

Huenig v Isaacs

A

10% defects or less, allowed action for agreed sum

65
Q

Jacobs & Youngs v Kent

A

Pipes

65
Q

Dies v British International Mining

A

Recovery of part-payment

67
Q

Anglia TV v Reed

A

Actor breach

68
Q

James Finlay v Kwik Hoo Tung

A

Not risk reputation

69
Q

CCC Films v Impact Quadrant

A

C can generally choose either expectation or reliance

69
Q

McRae v Commonwealth

A

Oil tanker

71
Q

Farley on Watts v Morrow

A

Qualified it with limitations

73
Q

Makdessi v Cavendish Square on agreed damages

A

Genuine pre-estimate may be too rigid now

73
Q

Clippens Oil v Edinburgh & District

A

No need to do anything unaffordable

75
Q

What case shows courts are more likely to concur with agreed damages clause if the loss is uncertain?

A

Murray v Leisureplay

77
Q

What type of remedy was given for consequential loss in Tito v Waddell?

A

Diminution of value

78
Q

Wrotham Park v Pakside Homes

A

5% account of profits

80
Q

Who said that in cases like Ruxley, English law has failed to recognise the value of right to performance itself, so not protecting EI at all?

A

B Coote

81
Q

What could they not claim for in Victoria Laundry?

A

Lucrative contract

83
Q

Araci v Fallon

A

Racehorse; rider retainer

85
Q

Tito v Waddell (No.2)

A

Islanders and trees

86
Q

Patel v Ali

A

Delay (4) + hardship = no SP, but unlikely hardship on its own

88
Q

Who argued restitution is the most important damage?

A

Fuller and Perdue

90
Q

When are two exceptions to CCC Films v Impact Quadrant?

A

Bad bargain as EI caps RI, respecting contractual allocation and if EI damages are speculative

91
Q

Positive duty to act reasonably to avoid losses by substitute

A

Yerton v Eastwoods Froy

92
Q

The Albacruz

A

Exception to usual rule of privity - A may recover substantial damages if privity of contract, but if no proprietary interest or risk then he is accountable to the true owner

94
Q

Murray v Leisureplay

A

Unfair dismissal

95
Q

Barclays Bank v Fairclough Building

A

Asbestos, hoses

96
Q

What two cases show expectation damages speculative?

A

McRae v Commonwealth; Anglia TV v Reed

97
Q

Sky Petroleum v VIP Petroleum

A

Shortage of petrol

98
Q

S.53(3) SoGA

A

Expressly stipulated diminution

99
Q

The Achilleas

A

Follow-on charter; assumption of responsibility

100
Q

Addis v Gramophone

A

No punitive punishment of D for BoC

101
Q

The Sylvia

A

Hoffman’s test is used when Hadley causes ‘unquantifiable, unpredictable, uncontrollable or disproportionate’ results

103
Q

What did Steyn use to work out if there was non-pecuniary interest in Farley?

A

Law of nuisance, making use of existing authorities

104
Q

What is noted about allowing damages in Panatown on the ground that damages are for substitute performance?

A

Damages were for delay, but delay was a historical fact that couldn’t be remedied by money.

105
Q

Positive duty to act reasonably to avoid losses by renegotiating

A

The Soholt

106
Q

What consequences are there from accepting damages are to give C substitute performance?

A

Wider availability of cost of cure to enable C to get performance and courts limiting cost of cure if work not to be carried out or unnecessary hardship to D (Ruxley and Panatown)

107
Q

What is the basic rule for recovering D’s profits from breach?

A

You can’t except exceptionally (A-G v Blake)

108
Q

Linden Gardens v Lenesta

A

Built on The Albacruz - can recover money to give B benefit of the bargain which C failed to deliver

109
Q

Where does McKendrick suggest Achilleas fits under Hadley?

A

2nd limb

110
Q

Astley v Austrust Limited

A

Should get rid of CN, says High Court of Australia

112
Q

Why was there no loss of amenity in Jacobs & Youngs v Kent?

A

No non-pecuniary interest; just wanted damages

113
Q

Stockloser v Johnson

A

Even if not ready and willing, he may not forfeit all

114
Q

What are the three types of damages?

A

Reliance, expectation and restitution

116
Q

What was the impact of Farley on non-pecuniary loss?

A

Removed need for object of contract to be pleasure/peace of mind (Watts v Morrow)

117
Q

White & Carter v McGregor on action for agreed sum

A

Limitations on affirmation: legit interest and no cooperation needed.

118
Q

Quinn v Burch Bros

A

CL position of contributory negligence

119
Q

By including loss of opportunity in reliance interest, what did F & P do?

A

Bring it closer to EI

120
Q

Watts v Morrow

A

Must be sole object to avoid distress (but see Farley now)

121
Q

What was the broad approach of Mustily in Forsyth?

A

‘Consumer surplus’ so parties enter for reasons other than money

122
Q

US v Bethlehem Steel

A

Guns; paid excess for AD but overcompensatory?

123
Q

What case suggested Hoffman made no difference to Hadley?

A

MFM Restaurants v Fish & Co Restaurants

124
Q

Why does Victoria Laundry clash with The Heron?

A

Said that although NI foresaw type of loss, didn’t foresee extent and thus not recoverable

125
Q

What is a subdivision of non-pecuniary loss?

A

Loss of amenity

127
Q

Bolton v Mahadeva

A

31% defects so no action for agreed sum

128
Q

Wilson v Northampton and Bambury

A

Railway construction, difficult to know obligations so hard to give SP

130
Q

What case shows an unreasonable act by C can break chain of causation for D?

A

Lambert v Lewis

131
Q

If there is loss of performance to a third party, what two things protect the 3rd party’s loss?

A

C(RoTP)A and Albacruz v Albazro: Assumes loss belongs to 3rd

132
Q

The Mamola Challenger

A

Rejected Friedman and Treitel that reliance is fundamentally different from EI, claiming instead that reliance is a species of EI

133
Q

Hobbs v L & S Railways

A

Walking 4/5 miles (harm)

134
Q

What are the three requirements for recovering profits of D from breach?

A

Only when contractual remedies are inadequate, C must have ‘legitimate interest’ and regard to ‘all the circumstances’

135
Q

Cooperative Insurance v Argyll Stores

A

Anchor unit, 35, 16, oppressive

136
Q

Pilkington v Woods

A

No significant financial risk

137
Q

What did the court in Farley require for the case to fit under harm?

A

Physical emanation (sound waves: Clyde)

138
Q

When did Forsyth say that loss of amenity is given?

A

When ‘value of the promise… exceeds the financial enhancement of his position which full performance will secure’

139
Q

Who suggests F&P’s label of EI is misleading?

A

Friedmann

140
Q

Re Dagenham

A

‘Ready and willing’, courts may give buyer time to pay

141
Q

What are the two types of consequential loss?

A

Diminution of value and cost of cure

142
Q

What was the primary reason for allowing seller to keep the deposit in Union Eagle?

A

Commercial certainty

143
Q

When can C recover money under restitution interest?

A

Total failure of consideration (Giles v Edwards)

144
Q

What statute supports the cases of Giles & Co v Morris; De Francesco v Barnum?

A

S.236 Trade Union and Labour Relations (Consolidation) Act 1992

145
Q

Why is Forsyth not authority for damages payable in loss of amenity?

A

Damages were not in issue

146
Q

What did Scott require for inconvenience in Farley?

A

‘Sensory’ impact

147
Q

Giles v Edwards

A

Total failure of consideration needed for restitution recovering money