damages - remedies Flashcards

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1
Q

damages

A

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

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2
Q

types of damages

A

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

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3
Q

nominal damages

A

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

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4
Q

Staniforth v Lyal

A

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

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5
Q

Wrotham park / negotiating damages

A

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

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6
Q

damages for loss of amenity / speculative damages

A

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

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7
Q

Jackson v Horizon holidays

A

the holiday was disappointing

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8
Q

Huxley electrics v Forsyth

A

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

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9
Q

Farley v Skinner

A

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

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10
Q

How are damages calculated?

A

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

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11
Q

Hadley v Baxendale

A

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

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12
Q

Hadley two part test:

A
  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
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13
Q

Victoria Landry v Newman

A

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.

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14
Q

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’

A

'’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

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15
Q

reliance loss principle

A

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

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16
Q

Anglia TV v Reed

A

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

17
Q

Mitigation of loss

A

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.

18
Q

Thai Airways v KI Holdings

A

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

19
Q

Liquidated damages

A

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.