Legal Remedies Flashcards
Definition?
Legal Remedies are damages, any breach of contract and the person who has been breached against is entitled to damages.
Introduction?
A claim for damages is always available, as of right, to the claimant when a contractual term has been broken.
What are the three ways to assess the award of damages in contract claims?
1) Loss of Bargain.
2) Reliance Loss.
3) Restitution.
What is the aim of loss of bargain?
The idea here is to place the claimant in the same financial position as if the contract had been properly performed.
Loss of Bargain: Difference between value?
Bence Graphics v Fasson - The difference in value between the goods or services required in the contract and those actually provided.
Loss of Bargain: Loss of Profit in the contract?
Victoria Laundry v Newman Industries - If the claimant has lost profit in the contract they can claim that off the D who has breached.
Loss of Bargain: Profit remains?
Charter v Sullivan - However, if the claimant’s profit remains, there is no loss.
Reliance Loss?
Anglia Television v Reed - This is the expense incurred by the claimant who relied on the contract being performed. Money paid to other parties can be recovered from the D who breached.
They are mutually exclusive to prevent double recovery.
Restitution?
Clarke v Dickinson - This is a repayment of any money passed to the defendant from the claimant in advance of the contract being breached.
Assessing Damages: Remoteness Introduction?
Remoteness of damage does not establish how much compensation will be payable but which losses can be subject to compensation.
Assessing Damages: Remoteness - Contemplate normal losses?
The Heron II - The parties are expected to contemplate the normal losses that would have been suffered by the business.
Assessing Damages: Remoteness - Test for Remoteness?
Hadley v Baxendale
Objective Test - What loss is a natural consequence of the breach. Reasonable Person - What losses does the reasonable person contemplate.
Subjective Test - Any unusual losses must have been contemplated by the parties - Victoria Laundry v Newman - The parties must have been told about the unique situation where the D could lose.
Assessing Damages: Duty to Mitigate Loss - reasonable steps to minimise breach?
Pilkington v Wood - The injured party must take reasonable steps to minimise the effects of the breach. However, claimant not bound to go to extraordinary lengths to mitigate the loss, only do what is reasonable in the circumstances.
Westinghouse v Underground Electric Railways - If mitigation could have removed any loss suffered then no claim is allowed.
Assessing Damages - Types of Damages: Compensatory damages?
Money awarded for the loss suffered.
Assessing Damages - Types of Damages: Nominal Damages?
Staniforth v Lyall - If no loss i actually suffered but there is a breach, the court may award nominal damages.
