Discharge: Remedies Flashcards
Legal remedies
Repudiation/damages
Equitable remedies
Injunctions/specific performance
When repudiation used
Actual/anticipatory breach of
Condition- Poussard v Spiers
Innominate term- Hong Kong v Fir Shipping (serious breach)
When damages paid
Warranty- Bettini v Guy
Innominate- Hong Kong v Fir (non serious breach)
Two types of damages
Compensatory
Nominal
Nominal damages
V of breach suffers no loss as a result of the breach so the court can award nominal damages (small sum of compensation) to acknowledge breach
Robinson v Harman
Compensatory damages purpose is to put V of breach in same financial position they would be in if contract properly performed
Hadley v Baxendale
Normal losses are not too remote if reasonably foreseeable
Special losses are not too remote if D knew of particular circum and loss those circum would cause
Why is remoteness used
Compensatory damages- Work out which losses can be compensated (can only claim for losses not too remote from the breach of the contract)
2 methods to find out quantum of damages
- Loss of bargain/expectation loss
2. Reliance loss
Loss of bargain
Innocent party lose what’s expecting to receive from contract (usual method)
Puts wronged party in position they would be if contract had been carried out
Thompson v Robinson
Loss of bargain/expectation loss
Where one party has not performed at all
- cost of obtaining goods/service
- sue for profit (if likely as in high demand)
Charter v Sullivan
Where one party performs contract but defectively
- cost of restoring goods to expected quality
- gap in between price of goods contracted for & those received
Anglia TV v Reed
Reliance loss (if hard to work out expectation loss) Damages assessed by loss suffered by C on reliance of the contract going ahead
Farley v Skinner
Reliance loss
Can be used to cover loss of amenity/pleasure
Thai Airways v KI Holdings
C has duty to mitigate loss
- C must take reasonable steps to minimise loss caused by breach
- more lost profit due to not taking reasonable steps not compensated for
White and Carter v McGregor
Duty to mitigate losses only applies after actual breach (does not apply to anticipatory)
Normal losses & special losses
Normal losses come naturally from the breach
Special losses are caused by/based on particular circumstances
When equitable remedies used
If damages not adequate remedy
Prohibitory injunction
Court order to stop someone doing something
Mandatory injunction
Court order to do something
Beswick v Beswick
Specific performance
Court order requiring a party to specifically carry out their obligation as agreed in the contract
Requirements to use specific performance
- damages must be inadequate
- order must not cause undue hardship to D
- cannot be used for personal services
Statutory Remedies under CRA 2015 for goods
S20- right to reject (refund within 30 days)
S23- right to repair/replacement
S24- if goods cannot be fixed/replaced, reduction in price/refund may be available (guaranteed first 6 months)
Statutory Remedies under CRA 2015 for services
S55- repeat performance
S56- right to reduction in price
Statutory remedies under Law Reform (Frustrated Contracts Act) 1943
S1(2)- anything paid before FE can be covered, anything yet to pay is not payable
S1(3)- where no pre-payment had been made before frustration but performance has started, money may be sought for part performance
