Contractual breach and remedies

Question 1

Case that says that in order to recover damages for loss under a contract, causation must be established

Answer 1

Lambert v Lewis

Question 2

Case that says that consequential loss is not recoverable for breach of contract

Answer 2

Victoria Laundry v Newman

Question 3

Remoteness test for contractual damages (case and prinsiples)

Answer 3

Hadley v Baxendale (courier of a part for a mill): 1. Did the loss arise naturally from the breach. 2. Were the consequences understood by both parties to be a probable result of breach at the time of contracting

Question 4

Sale by description (S13 of the SoGA) - case that shows variations from description can only be tiny

Answer 4

Arcos v EA Ronaasen - thickness of wooden planks

Question 5

Case that says there is a duty to mitigate loss suatined as a result of contractual breach

Answer 5

British Westinghouse electric v Underground Electric Railways

Question 6

A case which shows that “in the course of business” (S12(2) SoGA) is generously interpreted by the courts

Answer 6

Stevenson v Rogers (fisherman sold his trawler. Selling boats was not his business, but it was still IN THE COURSE of business). CF the interpretation of in the course of business under UCTA - strict interpretation to protect consumers, eg in Feldarol Foundry - a car bought by a company for personal use of directors was NOT in the course of business

Question 7

What is the general rule for the measure of contractual damages

Answer 7

Expectation loss - what you would have had dad the contract been performed

Question 8

Case which introduced a reliance test for implied terms when there is sale of goods by description

Answer 8

Harlington v Christopher Hull - Buyer bought a painting because it was nice, not because of who the painter was (it was forged). No reliance on the description so no breach

Question 9

A case that shows that loss of chance is easier to make out in contract than in tort

Answer 9

Chaplin v Hicks - loss of the chance to win a beauty pageant - P had a 1 in 4 chance of winning

Question 10

What is the principle/aim of contractual damages

Answer 10

Expectation loss: as if the contract had been performed

Question 11

A case that shows that the term implied by S14 of the SoGA as to satisfactory quality is subject to a reasonableness test (“heavy duty” buckets melted after being left in very hot sunshine)

Answer 11

Aswan Engineering v Lupdine

Question 12

Three different ways of calculating expectation loss

Answer 12

1. Cost of cure, 2. difference in value, 3. loss of amenity

Question 13

What is the fallback rule for the measure of contractual damages

Answer 13

Reliance loss - the loss you have suffered in reliance of the contract being performed

Question 14

A case that shows where the burden of proof lies for reliance / expectation loss

Answer 14

CCC Films v Impact Quadrant Films: Reliance (expenses) loss - burden is on defendant to show those expenses would not have been recouped. Expectation (profits) loss - burden is on plaintiff to show that that’s how much profit they would have made.

Question 15

A case which shows that goods may not be of satisfactory quality under the SoGA even though they are useable in some way

Answer 15

Rogers v Parish (defective car, still driveable, seller did not fix within the agreed timescale of 6 months)

Question 16

What is the remedy for a breach of a condition

Answer 16

Termination AND damages

Question 17

What is the definition of “probable” for the purposes of the Hadley v Baxendale test for remoteness

Answer 17

The Heron II - serious possibility / real danger / not unlikely to result

Question 18

An example of when the reliance loss measure was used to calculate contractual damages

Answer 18

Anglia TV v Reed - Actor repudiated contract to act in film - no way of knowing how much profit the film would have made, so reliance loss - expenses incurred so far - was awarded

Question 19

A case where damages were awarded for loss of amenity

Answer 19

Ruxley v Forsythe - swimming pool not made as deep as specified in the contract. Cost of cure would make the plaintiff better off. There was no diminution of value.

Question 20

Case that shows that the TYPE of loss, not the SPECIFIC loss must have been understood to be probable for the purposes of the Hadley v Baxendale remoteness test

Answer 20

Parsons v Uttley Ingham

Question 21

What are the four ways that a term may be implied into a contract

Answer 21

By statute (SoGA 1979); where its obvious that the parties meant sometyhing to be a term (officious bystander), where a pre-contractual statement was so important, the parties must have meant it to be a term (Bannerman v White), for business efficacy

Question 22

When is consideration of contributory negligence relevant in determining damages for breach of contract

Answer 22

When the contract stipulated a duty to take care: Vesta v Butcher

Question 23

Once breach is established, what is the first thing you need to decide?

Answer 23

Whether the breach was of a warranty or a condition

Question 24

Where the description (S13 SoGA) has little bearing on the quality / usability of goods, it is not an implied term.

Answer 24

The Diana Prosperity - it didn;t matter that the ship was built in a different place to that stated in the contract

Question 25

Remedies under the SoGA

Answer 25

Damages - S51, Specific performance - S52

Question 26

What is the test for whether a statement was intended to become a term of the contract

Answer 26

Heilbut Symons - the OBJECTIVE intention of the parties

Question 27

What is the remedy for a breach of warranty?

Answer 27

Damages only

Question 28

Alternatives to damages for breach of contract

Answer 28

Action for an agreed sum, specific performance, injunction, restitution

Question 29

A case where cost of cure was awarded as damages

Answer 29

Radford v de Froberville - Wall was not built (wall not needed for any particular reason), so no difference in value or loss of amenity.

Question 30

Definition of breach of contract

Answer 30

Where a party, without lawful excuse, fails to perform their contractual obligations

Question 31

Damages for mental distress / diappointment

Answer 31

Farley v Skinner BUT only because it was material to the contract