Remedies Flashcards
GR to calculate expectation interest
position the innocent party would have been in had the contract been performed
(Forward looking, can recoup expected profits)
What are the 3 mechanisms to calculate expectation interest as the remedy?
1- cost of cure
2- diminution of value
3- loss of amenity
What is reliance interest
allows claimant to recover expenses incurred in preparing for, or in part performance of, the contract – these expenses have now been rendered pointless by the breach.
(backward looking)
When should reliance interest be used?
Alternative to expectation interest. Used for:
- misrepresentation
- where EI is highly speculative
Effectively seeks to place parties in same place as if never contracted.
What do expectation interest allow?
Recovering expected net or actual profit.
When do cost of cure employed to calculate expectation interest?
cost of substitute/remedial work
–usually used for defective works
When is the diminution of value mechanism employed to calculate expectation interest?
disparity between the value of the performance received and the performance that should have been received
When is the loss of amenity mechanism employed?
non-economic loss of pleasure–only in non-commercial
When to use/calculate reliance interest
when the EI is highly speculative
When does restitution interest employed?
To prevent unjust enrichment - Focus on the gains made by D by breaching the contract.
What does C have to prove to obtain remedies under contract?
Claimant must satisfy causation, remoteness. Mitigation can also chip away some recoverable.
Remedies under CRA 2015
- short term right to reject - within 30 days
- right to repair or replacement
- the right to a price reduction or final right to reject
When does right to repair/replacement under CRA 2015 become unavailable?
- impossible/disproportionate or
- had been tried once and goods still don’t conform or
- trader has failed to repair/replace
When can remedy be sought for breach in a contract for digital media under CRA 2015
within 6 months to complain beginning the day it was supplied
- right to repair/replacement – within a reasonable time and without significant inconvenience to the consumer. Preculed where impossible or disproportionate.
- right to price reduction
- right to refund - refund must be given within 14 days with the same payment method the customer sed
Is there a remedy under contract law for loss of reputation?
GR = no damages
Exception = loss caused by the way business had been run (contracts of employment where cannot find a new job because of the conduct of the previous employer’s corruption)
Can loss suffered by another part be recovered?
GR = damages cannot be recovered on behalf of another party.
Exception = circumvention of privity of contract -TP rights
Can mental stress be remedied under contract law? And When?
can be claimed where a major object of the contract is to provide pleasure, relaxation, and peace of mind.
It should be a non-pecuniary loss where a major object (but not the whole purpose) of the contract was to provide pleasure/relaxation/peace of mind.
When is loss of chance recoverable?
- loss is quantifiable in monetary terms
- real and substantial chance of opportunity coming to fruition (over 50%)
- not speculative
