Legal remedies- damages Flashcards
What are damages
Monetary compensation paid to the c by the d where fault of the d has been proven, to place c in position as if contract not happened
What are liquidated damages
Where the appropriate amount of damages was specified by parties during contractural formation
What are unliquidated damages
Where the amount of damages is determined by court
What 2 tests to the courts apply when determine whether c should be compensated damages
- but for test
- remoteness of damage
Explain the but for test
But for the d’s breach would the c have suffered losses, no= c entitled to damages
Explain the remoteness of damage and was case was used
Hadley v baxendale, held that c will be entitled to damages in respect of 2 types of losses
What are the 2 types of losses that a c can be entitled to
- normal/ordinary losses
- abnormal/unusual losses
Explain normal/ordinary losses
Loses that are naturally occurring from the breach
Explain abnormal/unusual losses
Losses reasonably supposed to be in contemplation of parties at point of formation
What does the case of Victoria laundry v Newman tell us
C is entitled to loss of usual profit but not of additional profits
What does the case of heron tell us
The d is liable to compensate loses he ought to have realised were not likely to result from breach
