Damages

Question 1

What are the principles underlying an award of damages? (4)

Answer 1

1. Damages are only compensatory
2. Damages may not be too remote
3. Damages must be mitigated
4. Damages may be pre-aranged

Question 2

What are the two limbs established under Hadley v Baxendale? (Only need to prove one)

Answer 2

First limb: Losses that arise naturally from the breach
Second Limb: Losses that are reasonably contemplated by both parties through knowledge of special circumstances at the time they made the contract

Question 3

What is the Object of Damages

Answer 3

To place a party in the same position as if the contract had been performed (Robinson v Harman)

Question 4

Types of Damages (2)

Answer 4

1. Liquidated (Agreed sum prior to breach, must be a fair estimate)
2. Unliquidated (Not agreed in advance)

Question 5

Case for Damages are only Compensatory

Answer 5

Chaplin v Hicks (Beauty Contest)

Question 6

Case for Damages may not be too remote

Answer 6

Hadley v Baxendale (Crank shaft at mill)

Question 7

Case for Damages to be mitigated

Answer 7

Redpath v Cisco