Remedies Flashcards
Compensatory Damages
Main type of damages
Don’t compensate for losses that are too remote
Expectation loss and reliance loss are mutually exclusive to prevent double recovery of damages
Loss of Bargain
Expectation loss
Aims if to put the innocent party in the same position as if the contract had been performed
Thompson Ltd V Robinson
loss of bargain could be in the form of loss of profit
Chaplin V Hicks
loss of bargain could be in the form of loss of chance
Reliance Loss
Aim is to put the claimant in the position as if the contract had never been made
Farley V Skinner
This is the expense incurred by a claimant who relied on a contract being performed, could be money spent in advance or reliance on a promise
Restitution
A repayment of money or other benefits that the D has receive in advance of the breach
Staniforth V Lyall
Nominal damages
No loss is actually suffered but their is breach
Wrotham Park Estate V Parkside Homes
Wrotham Park damages or negotiating damages
Try to quantify the sum which might reasonably been negotated between the parties for giving permission to the wrongdoer to act as they did
No actual financial loss but should get damages as the D got something for nothing
Speculative Damages
Based on guesswork or uncertain predictions about potential future losses
Legally, they are not recoverable because
- Lack reasonable certainty
- Based on hypothetical scenarios rather than actual or reasonably certain losses
- Often involve a chain of assumptions
Chaplin V Hicks
the mere fact that damages were difficult to calculate shouldn’t prevent them being awarded
Ruxley Electronics & Construction Ltd
purpose of the contract was to provide the amenity
Causation & Remoteness of Damages
Causation – claimant must prove the breach cause the loss, not just provided the opportunity for loss (but for test)
Remoteness – doesn’t establish how much compensation but merely which losses will be the subject of compensation
Hadley V Baxendale
two part test
Obj: what loss is a natural consequence of the breach
Sub: specific losses in the minds of both parties when the contract is formed
Victoria Laudry Lts V Newman Industries Ltd
modified the two part test
Thai Airways V K I Holdings
Duty to mitigate loss so didn’t suffer
Liquidated Damages
Where the amount of damages has been fixed by a term of the contract
Parking Eye Ltd V Beavis
The party seeking to rely on the term doesn’t have to have suffered loss
Purpose of the term can be to act as a deterrent
