Contract: Remedies (Paper 3-Section B Topic 8)

Question 1

What are damages?

Answer 1

An award of money made to compensate a C who suffered a loss.

Question 2

The courts aim to do what?

Answer 2

Put the C back in the position they would have been in, had the contract been completed as agreed.

Question 3

Damages cannot be awarded if what?

Answer 3

The loss is ‘too remote’

Question 4

Damages are awarded for what?

Answer 4

Expectation loss (loss of bargain)
Reliance loss (wasted expenditure)

Question 5

What is an Expectation loss?

Answer 5

Put C back in the position they would have been in if the contract was properly performed

Question 6

What is a reliance loss?

Answer 6

Allowing the C to claim for expenses they’ve paid in advance of the contract being formed

Question 7

Name the types of damages

Answer 7

Nominal
Speculative
Liquidated
Compensatory

Question 8

Give the held of: Staiforth v Lyall

Answer 8

Nominal damages are awarded if no loss has been suffered

Question 9

Nominal damages are awarded for what?

Answer 9

A breech rather than the loss suffered

Question 10

Give the held of: Wrotham Park v Parkside Homes

Answer 10

The Wrotham park award states that damages should be calculated based on what would have the ‘reasonably been negotiated between the parties’

Question 11

Give the held of: Morris-Garner v One Stop

Answer 11

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

Question 12

What are speculative damages?

Answer 12

Damages that haven’t happened/difficult to quantify

Question 13

Give the held of: Addis v The Gramophone

Answer 13

Courts were unable to quantify loss of humiliation so no damages were awarded but C was able to claim for loss of earnings

Question 14

Damages can be awarded of a ‘speculative nature’ for mental distress if what?

Answer 14

If the entire point of the contract is for pleasure

Question 15

Give the held of: Jackson v Horizon Holiday

Answer 15

C was able to claim for his family

Question 16

Define loss of amenity

Answer 16

Reduction of your ability to do something

Question 17

Give the held of: Ruxley Electronics and Construction v Forsyth

Answer 17

She successfully claimed for her loss of amenity

Question 18

What are liquidated damages?

Answer 18

When the amount of damages to be paid is a term of the contract (only accepted if amount represents accurate assessment of loss)

Question 19

Are penalties liquidated damages?

Answer 19

No

Question 20

Give the held of: ParkingEye v Beavis

Answer 20

The fine was enforceable as it was not seen by the court as a penalty

Question 21

What are the principles the court must follow from the ParingEye v Beavis case?

Answer 21

• 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

Question 22

What does quantum meruit mean?

Answer 22

They’ll be paid for the work done

Question 23

How are damages awarded on a Quantum Meruit basis?

Answer 23

1. If no amount is specified in agreement, courts will award a reasonable amount (URDC v Powel)
2. If circumstances imply new agreement
3. Innocent party is able to claim if other party breeches contract or when the innocent party is prevented from performing side of agreement

Question 24

Give the held of: Steven v Bromley

Answer 24

Steven was able to claim for the additional items he had to carry

Question 25

What is considered when awarding compensatory damages?

Answer 25

remoteness
causation
duty to mitigate loss

Question 26

What is causation in fact considered to assess in compensatory damages?

Answer 26

Whether D factually caused the breech and whether it was reasonably foreseeable

Question 27

Give the held of: Monarch Steamship Co Ltd

Answer 27

Outbreak of war didn’t break the chain of causation and but for their actions C wouldn’t have suffered the losses

Question 28

Give the held of: Hadley v Baxendale

Answer 28

Remoteness must be:
1. What loss was a natural consequence of the breech?
2. Did D know of the specific potential losses?

Question 29

Give the held of: Victoria Laundry v Newman industries

Answer 29

• 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)

Question 30

Give the held of: Westington Electric v Underground Electric Railways

Answer 30

Party at loss must take reasonable steps to mitigate losses

Question 31

Give the held of: White and Carter v McGregor

Answer 31

C was within their rights to fit the bins and wait for actual breech of D

Question 32

Give the held of: British Westinghouse Electric v Underground Electric

Answer 32

If mitigation removes or could have removed any actual loss, there can be no claim for damages

Question 33

what is the aim of loss of bargain?

Answer 33

This aims to put C in the same financial position they would have been in had the contract been preformed.

Question 34

what does loss of bargain look at?

Answer 34

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

Question 35

What is the held in Charter V Sullivan?

Answer 35

As the seller/owner would have been easily able to sell the popular car, only nominal damages were available

Question 36

Give the held of: Chaplin v Hicks

Answer 36

She was entitled to damages- they were assessed on speculative nature

Question 37

What is reliance loss?

Answer 37

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

Question 38

Give the held of: Anglia TV v Reed

Answer 38

Actor was made to pay damages on the basis of reliance loss

Question 39

What is restitution?

Answer 39

To ensure that any payment made to D in advance is paid back to C

Question 40

Name the equitable remedies

Answer 40

Injunction
Specific performnce

Question 41

What is an injunction?

Answer 41

Prohibits someone interfering with the rights of another

Question 42

What is an injunction?

Answer 42

Prohibits someone interfering with the rights of another

Question 43

Give the held of: A B v C D

Answer 43

injunctions are permanent (mandatory) or temporary (Interim)

Question 44

Give the held of: Page One Record v Britton

Answer 44

The court could not enforce the two parties to work together

Question 45

What is a specific performance?

Answer 45

A party must do something-granted in unique situations

Question 46

Give the held of: Airport Industrial v Heathrow Airport

Answer 46

Judge refused to grant specific remedy as it would have put the company in liquidation

Question 47

What are the remedies for the consumer under the Consumer Rights Act2015?

Answer 47

• right to reject goods
• s.20 right to reject
• s.23 right of replacement
• s.24 right to price reduction

Question 48

What are the remedies for the trader under the Consumer Rights Act 2015?

Answer 48

• right to retain goods until buyer pays for them
• cases of insolvency=right to regain possession of goods