Damages Flashcards
What is expectation loss?
Robinson v Harman
He is so far as money can do it to be placed in the same situation with respect to damages as it the contract had been performed.
What is the cause which sets out the broad ethos of damages?
Obagi
How do you put C in a position he would have been?
Difference in value (goods)
Cost of cure (services)
What if this leads to unfairness?
Ruxley v Forsyth - pool was only 9 inches too shallow. Difference in vale = 0. Cost of cure = 21,000. Held -
2,500
Loss of amenity
What about lost opportunity?
Chaplin v hicks - can be claimed
When will the courts award damages for mental distress and disappointment?
Jarvis v Swan’s tour - where the contract is to provide pleasure, entertainment, enjoyment or peace of mind
Does not have to be the sole purpose of the contract. Can be sufficient for it to be an important object.
What is reliance loss?
If we cant quantify future profits from a contract, then can claim on any money spent preparing for the contract (Anglia TV)
What is the central remoteness rule?
Loss must be within the reasonable contemplation of the parties at the time of the contract.
2 limbs of Hadley and Baxendale
- Arising naturally from the breach
- Unusual loss can be sort, if special circumstances causing the loss are known the both parties at the time the contract is made.
Victoria Laundry v Newman Industries - what’s relevant for discussion?
Same principle as Hadley. The judgement did change the meaning of ‘within reasonable contemplation’ to what is ‘reasonably foreseeable’.
This was later criticised as being too wide in The Heron
What type of injury can be claimed for?
In Parsons v Uttley, the court decided that if the defendant could contemplate the type of loss as a serious possibility, then all loads of that type is recoverable even though the extent of the loss could not have been contemplated.
Issues this raises?
To reconcile Victoria Laundry/Hadley and Baxendale and Parsons v Utterly, normal business profits and special business profits must be deemed to be different ‘types’ of loss. Confirmed in Brown v KMR
Consider the Archilleas case…
Although it hasn’t changed the general principle of Hadley Baxendale, it suggests that in regards to complex commercial deals, the courts may seek to assess whether or not the party had assumed responsibility for losses of that kind…
Mitigation?
Claimant must take reasonable steps to mitigate his loss.
British Westinghouse v Underground Electric Railway
Contributory negligence?
If the breach of contract is negligence, then this would give rise to the rules of contributory negligence - in Law Reform Act (1945)
Time for assessment?
Damages are assessed by reference to the time of breach: but the key principle is that damages must cover the loss. The normal rule should not be applied if this key principle is offended (Golden Straits v Nippon)
Specified damages and penalty clauses?
Was it a genuine attempt to pre-estimate the loss?
Rules set out in Dunlop -
- is sum extravagant?
- if the breach is not paying a sum of money, if the sum of the clause exceeds that amount?
- if a single sum is due on the happening of one of multiple events, varying in severity, there is a presumption of penalty.
- a clause can be specified camera -
Even if impossible to pre estimate loss - commercial considerations are important ie balance the bargaining powers between the parties, Azimut Benetti
Commercial cases - both sides are influential businessmen with lawyers?
- was there commercial justification
- was the provision extravagant or oppressive
- Was the predominant purpose of the provision to deter breach
- if relevant , was the provision negotiated on a level playing field
- cavendish v makdessi
What is an action for an agreed sum?
When there is a legal duty to pay a certain amount, a payee can bring a claim for the agreed sum
Termination of contract?
Condition? Innominate?
What is a specific performance?
An order of the court which requires a party to perform his contractual obligations. Can be combined with damages.
Rarely used. If subject of the contract is unique - like a painting- then could be.
Only if just and equitable - not a punishment
What are injunctions and when are they used for remedy in contract?
A contract may contain a negative promise. Warner bros v Nelson (cant perform in other films)
Page one records v Britton -
Factors to consider:
Length of time -
Whether granting an injunction will seriously affect parties career
