Contractual Remedies

Question 1

three types of remedies

Answer 1

legal remedies- a right for breach of contract (damages)
equitable remedies- discretionary
statutory remedies- dependent on the specific statute

Question 2

compensatory damages

Answer 2

puts V in the position they would have been in if the contract had been properly completed and performed by the defendant.

Question 3

nominal damages

Answer 3

V has not suffered a loss but can claim damages for the breach.

Question 4

speculative damages

Answer 4

courts avoid granting these, they are estimated as they cover loss of a chance of a benefit.

Question 5

Staniforth v Lyall (nominal damages)

Answer 5

facts: upon breach the claimant hired the boat to someone else for a greater profit than he would have made the original contract.
held: as he had suffered no loss he was awarded a nominal sum of damages.

Question 6

Wrotham Park v Parkside Homes (nominal damages)

Answer 6

principle: the claimant had suffered no loss but damages were awarded on the basis of the hypothetical sum the claimant could have charged to release the covenents.

Question 7

Chaplin v Hicks (speculative damages)

Answer 7

facts: Actress sued Hicks for missing a job interview in his beauty contest. Awarded £100, but Hicks appealed, arguing damages were speculative.
principle: the mere fact that damages were difficult to calculate should not prevent them from being awarded.

Question 8

Ruxley Electronics v Forsyth (speculative damages)

Answer 8

as he hadnt received the exact swimming pool that he had contacted for, the court awarded him 2,500 for the loss of amenity.

Question 9

other factors

Answer 9

causation and remoteness of damage
summary of the role of the defendant’s knowledge

Question 10

foreseeable

Answer 10

it must be established that the losses are foreseeable (remoteness of damage) to award compensatory damages.
if losses were foreseeable at the time of making the contract, it must be proven that these losses were actually caused by the breach (causation)

Question 11

causation and remoteness (but for test)

Answer 11

but for the breach of contract, would the claimant have suffered the loss?
remoteness of damage is determined to see which types of losses can be awarded damages.

Question 12

Victoria Laundry v Newman Industries

Answer 12

-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 the actual knowledge of defendant

Question 13

Czarnikow v Kuofos (The Heron II)

Answer 13

the court decided that under the subjective part of the test in Hadley v Baxendale it was only necessary to show that the losses were in reasonable contemplation of the parties as a possible result of the breach

Question 14

H Parsons (Livestock) v Uttley Ingham

Answer 14

the courts must determine what as in the contemplation of the parties at the time the contract was made.

Question 15

knowledge of defendant requirement

Answer 15

the courts consider what parties would have known or contemplated at the time of making the contract.
-common knowledge- what happens in the ordinary course of things (what parties are assumed to know even if they did not)
-actual knowledge of special circumstances that D knew or was told.
D will be liable if a reasonable person in the same position would have viewed the damage as not likely as a result of breach.

Question 16

recoverable loss (damages or compensation can be awarded)

Answer 16

-loss of a bargain- loss due to the contract not being performed.
-reliance loss- expenses incurred due to relying on the contract

Question 17

Bence Graphics v Fasson

Answer 17

facts:
principle: the difference between value of goods stated in the contract and those actually provided can be recovered

Question 18

Charter V Sullivan

Answer 18

facts
principle: if V is left with goods due to breach and there is a market, they can only get damages for the difference

Question 19

Victoria Laundrey v Newman

Answer 19

facts:
principle: profit V would have made if not for breach can be recovered

Question 20

Chaplin v Hicks (loss of a bargain)

Answer 20

facts
principle: generally speculative loss is not covered (there are some exceptions)

Question 21

Anglia Television v Reed (reliance loss)

Answer 21

facts:
principle: sometimes the profit of a bargain cannot be predicted so courts can award for reliance loss.

Question 22

Farley v Skinner (reliance loss)

Answer 22

facts
principle: damages can be awarded for loss of amenity

Question 23

mitigation of loss

Answer 23

the courts expect victims to take reasonable steps to minimise the effects of the breach.

Question 24

British Westinghouse Electric v Underground Electric Railways

Answer 24

facts: 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.
held: the courts took this into account when calculating damages as V took steps to mitigate the loss.