Contract Remedies

Question 1

Liquidated Remedies

Answer 1

Compensation that is agreed in advacnce by the parties
- only accepted if representas a accurate an proper assessment of losses - not penalty

Question 2

Bridge v Campbell

Answer 2

Clause in hire purchase agreement to cover deprecation.
Court held this did not reflect actual depreiactaion so was invalid

Question 3

Dunlop Tyre v New Garage and Motor Co

Answer 3

Criteria for deciding whether liquiudated damages are extravagant
- Extravangant sum will always be a penalty
- Large sum for small debt = penalty
- Fixed Sum that is used to cover variety of breaches = Penalty

Question 4

ParkingEye v Beavus 2015

Answer 4

Can enforce penalty clauses if not Unconscionable
- Consider wider commerical context
- Penalty no longer has ot be pre-estimeate of actual loss
- Clause can act as detterent against specefic breach

Question 5

Nominal Damages

Answer 5

When injured party has valid claim but courts think action shpild not have been brought

Question 6

Charter v Sullivan

Answer 6

Purcahser of car refused to take delivery, seller had no problem selling it again, so only nominal losses awarded

Question 7

Substanital Damages

Answer 7

Usual type of damages awarded, used to compensate injured party for actual losses suffered

Question 8

Wrotham Park Estate v Parkside

Answer 8

instead of calculating how much injured party had lost. Attempts to quantify how much might have been reasonably agreed between parties

Question 9

Explemlary Damages

Answer 9

In excess of compensation - used to show courts disproval of other parties conduct

Question 10

Quantum Merit

Answer 10

As Much is deserved

Question 11

Planche v Colburn

Answer 11

C had contract to write book for £100 upon completion, D cancelled
Court held C was entiteled to recover £50 on quatum merit basis

Question 12

Golden Victory Case

Answer 12

LOSS OF BARGAIN / EXPECTATION LOSS
Cancellation of charter due to outbreak of Iraq War
HoL held damages should represenat the value of contractual benefits of whihc the claimant had been depreived of by the Breach

Question 13

Anglia TV v Reed

Answer 13

Reliance Loss
TV company incurred expenses of hiring stagg in order to produce film, Reed pulled out
Court held that damages would be calculated by expenses incurred rather than loss of profit

Question 14

Victoria v Newamn

Answer 14

Loss of Profit
Victoria was a laundry buissness and had a contract for purchase of boiler to be delivered on specific date, delay caused loss of profit
Court held reasonabley forseeable that loss of profit would flow from breach

Question 15

British WE v Underground Railway of London

Answer 15

Underground brought defective turbines, they purchased new ones whihcb were more effiecent and covered there losses.
Court held no entitled to damahes as they mitiagted all losses

Question 16

Stansvie v Troman

Answer 16

Decorator breached contractual duty in not securing premises after he finished, led to burglary
Burglary was not intervening act
Decarator was liable

Question 17

Hadley v Baendale

Answer 17

Mill owner ordered new crankshaft, mill unable to operate without it. delay led to loss of profits
Court held seller wasnt aware mill couldnt operate as they may have had spare etc
Not liable for losses

Question 18

Prohibitory Injunction v Mandatory

Answer 18

Mandatory compells D to do something

Question 19

Warner Bros v Nelson

Answer 19

Nelson entered contract of exclusivity with Warner Bros, she entered UK in order to break it.
Court granted Prohibitory injunction to prevent breach

Question 20

Order of Specific Performance

Answer 20

Compells one side of contract to perform their contractual obligations

Question 21

beswick v Beswick

Answer 21

Contract between uncle and nephew contained clasue that upon his death his wife would be paid weekly, newphew paid her once
Sued as executor of the will - granted Order of Specific preformance for newphew to pay weekly

Question 22

Rescission

Answer 22

Places parties back to pre-contractual position

Question 23

Rectification

Answer 23

Equitable remedy under which a written document can be altered to correct a mistake