Remedies 1

Question 1

Expectation Damages
Compensatory
Leads to:

Answer 1

• Nominal damages
• C not safe from a bad bargain
• No recover of D’s profits from breach (unless exceptional case, see AG v Blake))
• No punishment (even where Defendant makes a deliberate and calculated breach of contract) (Addis v Gramophone Co Ltd)

Question 2

Expectation Damages
Measuring Loss
GH Treitel, The Law of Contract

Answer 2

‘A contract can… give rise to two quite separate expectations: that of receiving the promised performance and that of being able to put it to some particular use’.

Question 3

Loss of Amenity

*Ruxley Electronics and Construction Ltd v Forsyth [1996]

Answer 3

• Court said he still deserved st for it not being exact to his specifications
  o Diminution would undercompensate
  o Cost of cure would overcompensate
  o Instead gave loss of amenity damages, give effect to loss of personal preference brought about through breaches like this
  o Loss of Amenity available in circumstances where ‘the value of the promise to the promisee exceeds the financial enhancement of his position which full performance will secure’. (360)
  o Loss of Amenity there to protect non-financial interests
  o Very controversial case and damages
   Loss of amenity damages called arbitrary
   Fails to uphold contract/bargain
   The court, though, had to do justice some way and the fairest thing to do is to reflect the frustration felt by Forsyth by awarding him a smaller more proportionate amount of money
   Court admitted loss of amenity impossible to award precise financial valuation, however this is obvious bc the loss is not financial. No different to awarding damages for a loss of arm or leg, has no definite financial value but should stll be compensated
• Loss of amenity ‘is incapable of precise valuation in terms of money, exactly because it represents a personal, subjective and non-monetary gain…’ (360-361).

Question 4

Reliance Damages

Answer 4

Reliance damages are available, but restricted
Generally, C can choose either expectation or reliance damages (CCC Films (London) Ltd v Impact Quadrant Films).
Reliance damages are costs of relying on other’s performance, costs preparation etc. Only going to be prefereable where the claimant has made a bad bargain, where the money they have spent on the contract is more than the profit they expect from the contract
Has this choice in theory but are 2 exceptions

Question 5

Liquidated Damages Clause

Answer 5

Terms in a contract which sets out how much the defendant will pay should a particular breach occur.

Question 5

Structure of a remedy?

Answer 5

1. Parties
2. State if there is a valid contract?
3. Key terms
4. Breach
5. Classification (I.e. Condition etc)
6. Liquidation damages clause
7. Unliquidated damages (type)
8. Limiting factor

Question 6

Anticipatory Breach?

Answer 6

Where one party cancel the contract before the date of performance

Question 7

If breach of condition, what are the two options?

Answer 7

1 Either: End the contract and sue now or

2. AFFIRM - sue later

Question 8

Acceptance by performance

Answer 8

Carbil v carbollic smoke ball co

Question 9

Unliquidated damages

Answer 9

A……………………..BREACH………………..B

Reliance Expectation
anglia tv v Reed Ruxley v Forsyth
1. Cost of cure
2. Difference in value
3. Loss of Amenity

Question 10

Loss of Amenity case ref:

Answer 10

Regus v Epcott

Loss of Amenity cannot apply in a business v business contract only consumer.

Question 11

What are the 4 ways to end a contract?

Answer 11

1. Performance
2. Agreement
3. Breach
4. Frustration