Contract remedies Flashcards
What are compensatory damages ?
Puts V in the position they would have been in if the contract had been properly completed and performed by the defendant
What are Nominal damages ?
V has not suffered a loss but can claim damages for the breach
What are speculative damages ?
Courts avoid granting these, they are estimated as they cover loss of a chance of a benefit
What are liquidated damages ?
contracts may stipulate an amount of damages within the contract
What is the but for test of causation in contract law ?
‘But for the breach of contract, would the claimant have suffered the loss?’
What is the test for remoteness of damage set out in Victoria laundry v Newman industries ?
Recoverable loss should be measured against a test of reasonable foreseeability
Foreseeability of loss is dependent on knowledge at the time the contract was made
Knowledge includes common knowledge, and actual knowledge of defendant
What are the 2 types of knowledge of the defendant ?
Common knowledge- what parties are assumed to have known even if they didn’t
Actual knowledge of special circumstances that d knew or was told
What are the 2 types of recoverable loss ?
Loss of Bargin- Loss due to the contract not being performed
Reliance loss- expenses incurred due to relying on the contract
what is mitigation of loss ?
Where the courts expect victims to have taken reasonable steps to minimalise the affects of the breach
What happened in the case of British Westinghouse Electric v Underground Electric Railways ?
The goods delivered were defective, V purchased replacements which were more efficient than the contracted goods. They obtained benefits over and above the original goods
What is the case of Steven v Bromley an example of ?
If a fresh agreement is implied in place of the original one, courts can award damages based on this new agreement
What is the case of De Barnady v Harding an example of ?
If the contract is breached after work already done, the courts can award damages based on the work done
What is the remedy of specific performance ?
The opposite of an injunction, a court order. for the party to perform a specific contractual obligation
As well as termination, what are the rights against goods ?
A lien – right to retain possession until the sum is paid
Seller can regain possession of goods in transit if buyer is insolvent
Right of resale
What case can be used for specific performance ?
Airport industrial v Heathrow airport (2015)
