damages - remedies

Question 1

damages

Answer 1

the remedy is a right if the C has won an action from B of C. Court will try to achieve to put the person in the position they’d be in if the contract didn’t happen

Question 2

types of damages

Answer 2

> nominal damages
damages for loss of amenity/ speculative damages
liquidated damages

Question 3

nominal damages

Answer 3

are awarded if no loss is actually suffered but there is a breach

Question 4

Staniforth v Lyal

Answer 4

due to the breach of the contract C could hire the boat for a bigger profit than the original contract - no loss suffered

Question 5

Wrotham park / negotiating damages

Answer 5

if C wouldn’t have agreed a price yet they try to quantify the sum which might have been negotiated between the parties

Question 6

damages for loss of amenity / speculative damages

Answer 6

from 1970s the courts began gradually to allow damages for some losses like these of sole purpose of the contract was to provide a pleasurable amenity

Question 7

Jackson v Horizon holidays

Answer 7

the holiday was disappointing

Question 8

Huxley electrics v Forsyth

Answer 8

10% less of his swimming pool which cost as much as the whole swimming pool to correct

Question 9

Farley v Skinner

Answer 9

aircraft noise that the surveyor reassured him that there wasn’t

Question 10

How are damages calculated?

Answer 10

Which losses can C claim for?
court looks at ‘causation and remoteness of damages’ to decided which losses can be compensated

Question 11

Hadley v Baxendale

Answer 11

mill owner contractor a carrier to deliver a crank shaft which was broken so they couldn’t operate the mill - carrier didn’t know this + was late with delivery
carrier was unaware of the importance of prompt deliver

Question 12

Hadley two part test:

Answer 12

1. what loss is a natural consequence of the breach?
2. did the carrier know the mill couldn’t operate without it?
   - based on specific knowledge of potential losses in the mids of both parties when the contract was formed

Question 13

Victoria Landry v Newman

Answer 13

could compensate loss of usual profits from the date of breach as this was a natural consequence. Couldn’t compensate additional lost profits from a special offer they couldn’t take up without the boiler.

Question 14

Heron II
the court may say its implied that D was aware of the possibility of loss because a ‘reasonable person would’ve been aware’

Answer 14

'’any losses that were within the reasonable contemplation of the parties’’
loss of profit due to fall in market price of sugar - ship owners didn’t know what the buyers intended to do with the sugar BUT knew about the sugar market

Question 15

reliance loss principle

Answer 15

an alternative to damages for expectation loss where these are too difficult to calculate
C can recover any money they’d spent because they’d relied on the contract being performed

Question 16

Anglia TV v Reed

Answer 16

Anglia spent a lot of money preparing for a film. Rob Reed agreed to be the main actor but dropped - no suitable replacement so film wasn’t made
couldn’t predict film profits so used reliance loss + Rob Reed was liable for expenses incurred by Anglia TV

Question 17

Mitigation of loss

Answer 17

the parties should take reasonable steps to mitigate losses, which means to keep them to a minimum
e.g. looking for alternatives.
If mitigation removes or could’ve removed any actual loss suffered, this reduces the claim for damages.

Question 18

Thai Airways v KI Holdings

Answer 18

C mitigated their losses successfully by ordering another aircraft and as these were more fuel efficient , this substantially reduced damages awarded towards them

Question 19

Liquidated damages

Answer 19

are an amount of damages which are stated in a term of a contract. The idea is that the parties have agreed in the contract, how much compensation will have to be paid by the other party if the contract is breached.