Damages For Breach Of Contract

Question 1

Ruxley Electronics v Forsyth 1998

Answer 1

An injured party may claim the cost of rectifying an the defect.

Cost of rectifying pool was excessive so £2,500 awarded for loss of amenity

Question 2

Anglia TV v Reed 1972

Answer 2

Reliance loss may be awarded where it is not possible to show a loss of profit or a reasonable calculation cannot be made

Question 3

Addis v Gramophone co 1909

Answer 3

Old rule damages for mental distress were not recoverable

Question 4

Jarvis v swan tours 1973

Answer 4

Old rule no longer applies where primary purpose of contract was for enjoyment

Question 5

Watts v Morrow 1991

Answer 5

Damages for mental distress could be awarded for physical inconvenience or discomfort caused

Question 6

Farley v Skinner 2001

Answer 6

Recognised that pleasure did not need to be the main or only element of the contract just important

Question 7

Malik v Bank of Credit & Commerce 1997

Answer 7

Damages were recoverable for injury to reputation - claimants job prospects could be adversely affected

Question 8

Hadley v Baxendale 1854

Answer 8

Damages are recoverable only when they arise naturally from the breach of contract (normal loss), or are in the contemplation of the parties at the time of contract was made

Question 9

The Heron II (1967)

Answer 9

Loss which a reasonable defendant would imagine was not unlikely

Question 10

The Achilleas 2008

Answer 10

HoL upheld H v B test but stated in certain circumstances it could be departed from in order to give effect to the presumed intentions of the parties

Question 11

Beoco v Alfa Laval 1994

Answer 11

Causation must be proved - the loss must be caused mainly by the defendant

Question 12

Dunlop pneumatic tyre v new garage and motor co 1915

Answer 12

Penalty clause exists if the sum is extravagant in comparison with the greatest loss, defendant has more to pay if they fail to pay a smaller sum, single lump sum is payable for different breaches.