Remedies

Question 1

Liquidated Damages or penalty clause?

Answer 1

Dunlop Pneumatic Tyre v New Garage

Question 2

Expectation interest aims to put claimant in the position they would’ve been in had the contract been performed properly

Answer 2

Robinson v Harman, confirmed in The Golden Victory

Question 3

Cost of cure

Answer 3

Birse Construction v Eastern Telegraph

Question 4

Loss of amenity - satisfaction of personal preference or pleasurable amenity; loss that is not economic in value

Answer 4

Ruxley v Forsyth - diminution in value was 0, but cost of cure was over £20,000

Question 5

In commercial settings it will be ‘unusual if not impossible’ for loss of amenity damages to be awarded

Answer 5

Regus (UK) v Epcot Solutions

Question 6

Claimant has choice whether to pursue reliance or expectation interest

Answer 6

Anglia Television v Reed

Question 7

Courts will not award expectation damages that are highly speculative

Answer 7

McRae v Commonwealth Disposals Committee

Anglia Television v Reed

Question 8

For reliance interest, claimant must show that he would have been able to recoup expenses had the contract gone ahead

Answer 8

C&P Haulage v Middleton

Question 9

Burden is on defendant to show that claimant would not have recouped expenses

Answer 9

Omak Maritime v Mamola

Question 10

Restitution interest

Answer 10

AG v Blake

• quasi fiduciary relationship
• inadequacy of other remedies
• must have ‘legitimate interest’

Question 11

Restitution Interest not available in unexceptional case of commercial breach

Answer 11

The Sine Nominee

Question 12

Restitution interest not available for non special/sensitive subjects like national security

Answer 12

Hendrix v PPX

Question 13

Emphasised exceptional nature of Blake

Answer 13

WWF

Question 14

Generally damages will not be awarded for mental distress, anguish or annoyance

Answer 14

Addis v Gramophone, confirmed in Johnson v Unisys

Question 15

Damages for mental distress may be awarded if the whole purpose of the contract was the provision of pleasure, relaxation and peace of mind

Answer 15

Jarvis v Swan Tours

Question 16

Jarvis extended to where pleasure was a major object (not whole purpose) of contract

Answer 16

Farley v Skinner (No2)

Question 17

Damages for mental distress generally unavailable in purely commercial contracts

Answer 17

Hayes v Dodd

Question 18

Generally damages will not be awarded for loss of reputation, but in exceptional circumstances may be limited to financial loss (e.g. from inability to find new work)

Answer 18

Malik v BCCI

Question 19

Loss of opportunity is recoverable if lost chance is quantifiable in monetary terms and there was a real and substantial chance that the opportunity might have come to fruition, else loss will be too speculative

Answer 19

Chaplin v Hicks

Question 20

Non-owner of property can recover damages for breach in relation to that property

Answer 20

St Martin’s Property v Sir Robert McAlpine

Question 21

Injured party should sue where they have their own right of action, rather than having another party sue on their behalf

Answer 21

Panatown

Question 22

Claimant must establish causation - breach was a dominant or effective cause of loss

Answer 22

Galoo v Bright Graham

Question 23

Intervening acts will not break the chain of causation if foreseeable

Answer 23

Monarch Steamship - not NAI

Lambert v Lewis - NAI

Question 24

Remoteness of damage:

• loss of ordinary type - imputed knowledge
• loss of unusual type - actual knowledge at time of contracting

Answer 24

Hadley v Baxendale

at time of contracting - Jackson v RBS

Question 25

Loss of laundry business recoverable but loss of lucrative dyeing contracts not

Answer 25

Victoria Laundry v Newman

Question 26

Remoteness in contract is narrower than in tort - in contract loss must be not unlikely

Answer 26

The Heron II, confirmed in the Achilleas

Question 27

Defendants not expected to know technical details of concrete construction - not liable

Answer 27

Balfour Beatty

Question 28

Injured party must take reasonable steps to mitigate their loss. Losses attributable to a failure to mitigate are not recoverable

Answer 28

British Westinghouse Electric v Underground

Question 29

Question of what steps are reasonable for mitigation is one of fact - no need to embark on complicated litigation

Answer 29

Pilkington v Wood

Question 30

Reasonable steps to mitigate may include accepting performance offered by the defendant under a new contract

Answer 30

Payzu v Saunders

Question 31

Injured parties’ actions should not be weighed in nice scales - doesn’t matter if claimant could’ve made more profit if he’d accepted defendant’s offer

Answer 31

Banco de Portugal v Waterlow

Question 32

Contributory negligence where breach of a statutory obligation AND where breach is a tort

Answer 32

Vesta v Butcher

Question 33

Deposits not normally recoverable even if payee has not suffered any loss as a result of the breach, so long as deposit given in earnest of performance

Answer 33

Workers Trust v Dojap

Question 34

Part payment may be recovered by a party in breach of contract

Answer 34

Dies v British Mining

Question 35

Specific performance will not be granted where damages are appropriate and adequate

Answer 35

Adderley v Dixon

Question 36

Claimant must have clean hands

Answer 36

Coatsworth v Johnson

Question 37

Action must be brought without delay

Answer 37

Eads v Williams

Question 38

Specific performance will not be granted where it will cause undue hardship on the defendant

Answer 38

Patel v Ali

Question 39

Specific performance will not be granted for contract of personal services e.g. employment

Answer 39

De Francesco v Barnum

Question 40

Specific performance will not be granted if constant supervision by the courts will be required

Answer 40

Argyll Stores

Question 41

Injunction

Answer 41

Lumley v Wagner

Question 42

Court may limit injunction to what is reasonable

Answer 42

William Robinson v Heuer