Damages. Flashcards
What are the basic principles? (5)
- Damages to compensate for loss.
- The measure of loss is based on “expectation.”
- Losses are subject to the rule of remoteness.
- Persons suffering loss are expected to mitigate.
- “Penalty clauses” are not enforceable.
What does Parke B say about damages as compensation?
“So far as money can do it to be placed in the same situation as if the contract had been performed.”
What doesn’t matter regarding punitive damages (and case)?
The conduct of the breaching party.
Addis v Gramophone - all that mattered was his financial loss.
Are lost chances still a loss (and case)?
Yes - its a lost opportunity to make money.
Chaplin v Hicks.
Can there be compensation for non-pecuniary (non-money related) loss?
No - loss must be of something with a financial value.
What are the exceptions to compensation for non-pecuniary loss? (3)
- Physical inconvenience or discomfort.
- Loss of Amenity.
- Loss of reputation from breach, resulting in financial loss.
When can nominal damages be awarded?
When mental distress is associated with the physical discomfort.
What is the case for ‘Loss of Amenity’?
Jarvis v Swans Tours Ltd.
What are the compensatory damages?
The difference between what was expected and the actual performance.
What are the 3 methods of calculating loss from expectation?
- Consequential loss.
- Difference in Value.
- Cost of Cure.
What is the difference in value?
Compensation for the difference in value to what received compared to what expected.
What is the cost of cure?
The cost of fixing what went wrong.
What is the point about difference in value and cost of cure?
- Can only receive one or the other (otherwise double recovery).
How will courts choose between difference in value and cost of cure (and case)?
By what is reasonable.
Ruxley Electronics and Construction Ltd v Forsyth.
What is said to be the 4th measure (and case)?
The Reliance Measure.
Anglia Television v Reed.
