Expectation measure of damages

Question 1

What is the expectation measure of damages

Answer 1

The primary measure of damages. Aims to put the party where they would have been if the contract was performed

Question 2

What are the three methods for quantifying the expectation measure

Answer 2

Diminution in value, cost of cure, loss of amenity

Question 3

Explain diminution of value

Answer 3

Difference between what is supplied and what is promised: Barry v Davies: auction for machine worth 28k and winning bid was 400 pounds. D refused to sell and bidder got damages of where he would be if contract had been performed (machine - bid) 27.k

Question 4

Explain cost of cure

Answer 4

cost of repairing loss:
Marlborough: contract for sale of land included right to water which was critical for vineyard. Extent of the water rights was misrepresented and innocent party was entitled to damages
Diminution of value = $400k
Cost of cure (purchasing water rights) = -$1m
they got 1 m

Question 5

Loss of amenity

Answer 5

Usually given when it is inappropriate to give cost of cure:
Ruxley: failed to build pool to specifications (was a bit shallower). Cost to fix would be $21K. Here, the expenditure needed to put right the breach (cost of cure) was out of all proportion to the benefit obtained (a slightly deeper pool). Was awarded $2.5k for loss of enjoyment