damages - remedies Flashcards
damages
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
types of damages
> nominal damages
damages for loss of amenity/ speculative damages
liquidated damages
nominal damages
are awarded if no loss is actually suffered but there is a breach
Staniforth v Lyal
due to the breach of the contract C could hire the boat for a bigger profit than the original contract - no loss suffered
Wrotham park / negotiating damages
if C wouldn’t have agreed a price yet they try to quantify the sum which might have been negotiated between the parties
damages for loss of amenity / speculative damages
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
Jackson v Horizon holidays
the holiday was disappointing
Huxley electrics v Forsyth
10% less of his swimming pool which cost as much as the whole swimming pool to correct
Farley v Skinner
aircraft noise that the surveyor reassured him that there wasn’t
How are damages calculated?
Which losses can C claim for?
court looks at ‘causation and remoteness of damages’ to decided which losses can be compensated
Hadley v Baxendale
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
Hadley two part test:
- what loss is a natural consequence of the breach?
- 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
Victoria Landry v Newman
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.
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’
'’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
reliance loss principle
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