Remedies

Question 1

Which type of damages put the non-breaching party in the position they would have been had the contract been performed properly?

Answer 1

Expectation damages or loss of bargain damages

Question 2

How can expectation/loss of bargain contracts be calculated in a construction contract (2 ways)?

Answer 2

1. Cost of cure
2. Difference in value between what was promised and what was provided

Question 3

Which type of damages are used when expectation damages would be too speculative?

Answer 3

Reliance damages (aka ‘wasted expenditure’)

Question 4

Reliance damages compensate the nonbreaching party for expenses ________ in reliance on the contract up to the time of ____.

Answer 4

incurred, breach

Question 5

Reliance damages aim to put the parties in the position they would have been had they….

Answer 5

never entered into the contract

Question 6

Which type of damages may be awarded if breach is established but no actual loss is proven?

Answer 6

Nominal damages

Question 7

Damages for physical injury are recoverable so long as the loss is not too ______ from the breach of contract

Answer 7

remote

Question 8

Damages for injury to ________ (e.g. mental distress) will not usually be awarded except in ________ contracts where the sole purpose was _________

Answer 8

feelings, consumer, enjoyment

Question 9

Are punitive damages recoverable in contract?

Answer 9

No - they can be recoverable in tort

Question 10

When is the amount of damages caused by a breach usually measured?

Answer 10

At the date of the breach

Question 11

What are the 2 elements of remoteness of damages to be recoverable under contract?

Answer 11

Losses must:

1. Arise naturally from the breach, and
2. Be in the reasonable contemplation of both parties at the time the contract was made

Question 12

An ________ event which could reasonably have been expected will not break the chain of ________ for a party who causes a breach which results in loss

Answer 12

intervening, causation

Question 13

If the breach is one of two causes of the loss, the breaching party is still ______

Answer 13

liable

Question 14

A nonbreaching party’s ________ _______ may be a defence if the breach involves a duty to take _____

Answer 14

contributory negligence, care

Question 15

Damages in contracts for sale of goods:

If goods aren’t delivered , the buyer ____ them, or the buyer wrongfully _______ to accept delivery, the starting point is the difference between the ______ price and the _____ price for the goods at the time of the breach

Answer 15

rejects, refuses, contract, market

Question 16

Innocent parties have a duty to do what to their losses?

Answer 16

Mitigate them

Question 17

When is there no duty for an innocent party to mitigate their losses?

Answer 17

Where the claim is for a debt owed

Question 18

For a debt claim, there is also no need to consider which other 2 elements which are considered for breaches of contract?

Answer 18

1. Remoteness
2. Causation

Question 19

Give 4 scenarios in which specific performance would not be granted as a remedy

Answer 19

1. Undue hardship to breaching party
2. No mutuality
3. Employment or personal services contracts
4. Order requires court supervision

Question 20

What is the equitable remedy of rescission?

Answer 20

The cancellation of a voidable contract due to the grounds that occurred before or at the time the contract was entered into (e.g. duress or misrepresentation)

Question 21

Equitable remedies will not be granted if the party seeking the grant unreasonably ______ seeking the remedy to the ______ of the other party (known as ______), or engaged in ___________ behaviour with respect to the contract in question (______ hands)

Answer 21

delayed, detriment, laches, unconscionable, unclean

Question 22

If a party will be unjustly enriched because a contract failed, what might be sought to prevent this enrichment?

Answer 22

Restitution

Question 23

For restitution to apply, the innocent party must have a _______ _______ in preventing the unjust enrichment

Answer 23

legitimate interest

Question 24

Which monetary award is given if restitution is required in relation to services?

Answer 24

Quantum meruit

Question 25

Which monetary award is given if restitution is required in relation to goods?

Answer 25

Quantum valebat