Contract: Remedies (Paper 3-Section B Topic 8) Flashcards
What are damages?
An award of money made to compensate a C who suffered a loss.
The courts aim to do what?
Put the C back in the position they would have been in, had the contract been completed as agreed.
Damages cannot be awarded if what?
The loss is ‘too remote’
Damages are awarded for what?
Expectation loss (loss of bargain)
Reliance loss (wasted expenditure)
What is an Expectation loss?
Put C back in the position they would have been in if the contract was properly performed
What is a reliance loss?
Allowing the C to claim for expenses they’ve paid in advance of the contract being formed
Name the types of damages
Nominal
Speculative
Liquidated
Compensatory
Give the held of: Staiforth v Lyall
Nominal damages are awarded if no loss has been suffered
Nominal damages are awarded for what?
A breech rather than the loss suffered
Give the held of: Wrotham Park v Parkside Homes
The Wrotham park award states that damages should be calculated based on what would have the ‘reasonably been negotiated between the parties’
Give the held of: Morris-Garner v One Stop
Wrotham Park damages should be awarded when:
- c would have very real problems in establishing financial loss
- when it is a ‘just’ response to a breech of contract
- should not be restricted to exceptional circumstances
What are speculative damages?
Damages that haven’t happened/difficult to quantify
Give the held of: Addis v The Gramophone
Courts were unable to quantify loss of humiliation so no damages were awarded but C was able to claim for loss of earnings
Damages can be awarded of a ‘speculative nature’ for mental distress if what?
If the entire point of the contract is for pleasure
Give the held of: Jackson v Horizon Holiday
C was able to claim for his family
Define loss of amenity
Reduction of your ability to do something
Give the held of: Ruxley Electronics and Construction v Forsyth
She successfully claimed for her loss of amenity
What are liquidated damages?
When the amount of damages to be paid is a term of the contract (only accepted if amount represents accurate assessment of loss)
Are penalties liquidated damages?
No
Give the held of: ParkingEye v Beavis
The fine was enforceable as it was not seen by the court as a penalty
What are the principles the court must follow from the ParingEye v Beavis case?
- Can be applied to consumer and commercial contracts
- Penalty does not have to genuine pre estimate of loss
- The party claiming does not have to suffer a loss to claim
- Penalty does not have to be financial
- Penalty can only be applied to primary obligation
- Clause can be a deterrent to prevent breech
What does quantum meruit mean?
They’ll be paid for the work done
How are damages awarded on a Quantum Meruit basis?
- If no amount is specified in agreement, courts will award a reasonable amount (URDC v Powel)
- If circumstances imply new agreement
- Innocent party is able to claim if other party breeches contract or when the innocent party is prevented from performing side of agreement
Give the held of: Steven v Bromley
Steven was able to claim for the additional items he had to carry
What is considered when awarding compensatory damages?
remoteness
causation
duty to mitigate loss
What is causation in fact considered to assess in compensatory damages?
Whether D factually caused the breech and whether it was reasonably foreseeable
Give the held of: Monarch Steamship Co Ltd
Outbreak of war didn’t break the chain of causation and but for their actions C wouldn’t have suffered the losses
Give the held of: Hadley v Baxendale
Remoteness must be:
1. What loss was a natural consequence of the breech?
2. Did D know of the specific potential losses?
Give the held of: Victoria Laundry v Newman industries
- loss should be measured against a test of reasonable foreseeability
- foreseeability of loss is dependant on knowledge t the time contract was made
- two types of knowledge: common (objective-reasonable man) and actual (subjective)
Give the held of: Westington Electric v Underground Electric Railways
Party at loss must take reasonable steps to mitigate losses
Give the held of: White and Carter v McGregor
C was within their rights to fit the bins and wait for actual breech of D
Give the held of: British Westinghouse Electric v Underground Electric
If mitigation removes or could have removed any actual loss, there can be no claim for damages
what is the aim of loss of bargain?
This aims to put C in the same financial position they would have been in had the contract been preformed.
what does loss of bargain look at?
It looks at:
The difference in value between what was provided and what should have been provided ( Bence graphics international Fasson)
Where there is a market to look at, the damages will be awarded based on the difference between the contract price and the price on the market. if the price on the market is similar to what they did/would receive, compensatory damages will not be available
What is the held in Charter V Sullivan?
As the seller/owner would have been easily able to sell the popular car, only nominal damages were available
Give the held of: Chaplin v Hicks
She was entitled to damages- they were assessed on speculative nature
What is reliance loss?
Allows the C to claim as a result of the contract not being performed or for the money spent for their side of the agreement to be fulfilled
Give the held of: Anglia TV v Reed
Actor was made to pay damages on the basis of reliance loss
What is restitution?
To ensure that any payment made to D in advance is paid back to C
Name the equitable remedies
Injunction
Specific performnce
What is an injunction?
Prohibits someone interfering with the rights of another
What is an injunction?
Prohibits someone interfering with the rights of another
Give the held of: A B v C D
injunctions are permanent (mandatory) or temporary (Interim)
Give the held of: Page One Record v Britton
The court could not enforce the two parties to work together
What is a specific performance?
A party must do something-granted in unique situations
Give the held of: Airport Industrial v Heathrow Airport
Judge refused to grant specific remedy as it would have put the company in liquidation
What are the remedies for the consumer under the Consumer Rights Act2015?
- right to reject goods
- s.20 right to reject
- s.23 right of replacement
- s.24 right to price reduction
What are the remedies for the trader under the Consumer Rights Act 2015?
- right to retain goods until buyer pays for them
- cases of insolvency=right to regain possession of goods
