Damages Flashcards
What are the steps for damages?
Assessing damages using remoteness
Types
Exceptions
Mitigation
Liquidated damages
What was the old test for assessing remoteness?
Remoteness is dependent on what loss is a natural consequence of the breach or whether the party knew it would happen
Which case gave us the old test for assessing remoteness?
Hadley v Baxendale
What is the new test for assessing remoteness?
Recoverable loss should be tested by reasonable foreseeability.
This is dependent on knowledge at the time the contract was made.
Knowledge can be common or actual
Which case gave us the new test for assessing remoteness?
Victoria Laundry v Newman
Can knowledge be implied on the basis of what a reasonable man may have contemplated in the circumstances?
Yes
Which case shows knowledge can be implied on the basis of a reasonable man?
Czarnikow v Koufas (The Heron II case)
(and Parsons v Uttley Ingham)
What are the 3 things you can use for a claim in damages?
Loss of bargain
Reliance loss
Restitution
What is loss of bargain?
Where the claimant is placed in the same financial position as if the contract had been performed (moving the clocks forward, unlike in tort)
How can loss of bargain be calculated?
The difference in value between the goods/services required and those provided.
or
Where there is a market, the difference will be between the contract price and the market price, if there is profit for the claimant there will be no loss. (If there isn’t a market, they can recover the full loss)
Which case shows how to calculate the difference in value between the goods/services required and those provided?
Bence v Fasson
Which case shows how to calculate loss of bargain where there is a market?
Charter v Sullivan
Which case shows how to calculate loss of bargain where there isn’t a market?
Thompson v Robinson
