Damages in Contract Flashcards
Which two cases conflict in expectation loss on remoteness?
Victoria v Newman Industries- Out of the contemplation of the parties
Parsons v Uttley Ingham- If some loss was expected then all is claimable
What is the aim of damages in contract?
To put the parties back in the position they would have been had the contract been properly completed
What is the rule in Parsons Livestock v Uttley Ingham?
If the damages were in the reasonable contemplation of the parties, it will not matter if the extent was not in the reasonable contemplation of the parties
Will there be damages awarded for unusually profitable contracts?
No. Victoria Laundry v Newman Industries
What is the rule regarding a loss of opportunity?
Chaplin v Hicks, the claimant gets back the same proportion of the benefit of the contract as the chance of them succeeding
Ruxley Electronics v Forsyth. What is the ratio?
There will be an award for loss of amenity if a contract has not been properly performed
What are reliance loss damages and which case?
A claimant will be put in the position they would have been in had the contract never had been formed, allowing them to recover expenses if profits were too unpredictable. Anglia TV v Reed
Damages are not awarded for distress or disappointment. Which case and which exceptions?
Addis v Gramophone. The exception is where the purpose of the contract is to provide pleasure
What is the case that gives the general rule for remoteness in damages?
Damages must either
1) Arise naturally from the breach
2) Be in the reasonable contemplation of the parties at the time the contract was entered into
Hadley v Baxendale
The parties should tell eachother about any special circumstances before contracting
Balfour Beatty v Scottish Power
The claimant should mitigate their loss
British Westinghouse
How can you tell the difference between specified damages and penalty clauses? Which case?
Dunlop v New Garage. If the amount payable is extravagant or unconscionable
What is the rule in Cutter v Powell?
Contractual obligations are strict. No payment for partial performance
Planche v Colburn
Quantum meruit sums can be awarded if a party has been prevented from performing the contract.
Quantum meruit sums can be awarded if a party has been prevented from performing the contract. Which case?
Planche v Colburn
