Damages and other remedies

Question 1

What is expectation vs reliance loss?

Answer 1

Expectation: put C in a position as he would’ve been if the contract was properly performed
Reliance: if the profit from the contract is too speculative, claim all costs incurred in the reliance on the contract

Question 2

When are damages for disappointment/distress available?

Answer 2

If the aim of the contract was to provide pleasure/peace of mind

Question 3

When is the loss not too remote?

Answer 3

If it was inevitable, or if D knew of the special circumstances making the loss a likely consequence

Question 4

How are damages usually quanitified?

Answer 4

Difference in value and the cost of cure (putting C in a position as if the contract was performed)

Question 5

Specified damages clauses vs penalty clauses

Answer 5

Specified damages: genuine attempt at estimating loss- binding
Penalty clauses: disproportionately high sum- unenforceable

Question 6

When may restitution be available?

Answer 6

• if a party paid money under the contract, and there was a total failure of consideration
• compensation for work done/goods supplied (if C did work and the contract was then broken, or if it was never finalised)

Question 7

When may restitutionary damages be awarded?

Answer 7

When C suffers a loss of opportunity to negotiate a release fee (and no other financial loss)

Question 8

Guarantees will be void unless…

Answer 8

They’re evidenced in writing, and signed by the guarantor