Remedies - Advanced Points Flashcards
What is an alternative to the ‘expectation interest’ in claiming damages?
reliance measure
what is a reliance measure
allows C recover expenses which have been incurred in preparing for, or in part performance of, the contract (which have been rendered pointless by the breach)
POL - C & P Haulage v Middleton
only possible for C to claim his reliance interest if contract would have enabled him to recoup those expenses had it been properly performed.
An aggrieved party cannot recover for expenses that would have been wasted whether or not the breach of contract occurred.
losses must flow from breach, not from making a bad bargain
What is the restitution interest?
the interest C has in the restoration to him of benefits which the defaulting party has acquired at his expense.
POL - Attorney-General v Blake
Damages were measured by C’s loss BUT
in exceptional case = court can require D to account to C for benefits received from a breach of contract IF OTHER REMEDIES INADEQUATE
Consequence of AG v Blake
C must show legitimate interest to deprive D of his profits
Is an efficient breach alone enough to justify allowing an account of profits?
NO
What is an ‘efficient breach’?
a) breach = cynical + deliberate;
b) breach enabled D to enter into a more profitable contract elsewhere; +
c) by entering into a new and more profitable contract, D put it out of his power to perform the contract w the C.
Effect of efficient breach
puts breaching party in a better position than if there had been no breach.
It is therefore efficient for the breaching party to breach the contract.
An efficient breach alone will not justify the award of damages on a restitutionary measure.
What is the remedy for total failure of consideration?
Restitution
When does a total failure of consideration occur?
one party has provided something of value under the contract but has received nothing in return.
How does restitution operate?
reverses the unjust enrichment of one of the parties.
In what context should Transfield/ The Achillieas be used?
Which test remains commonly used for remoteness - Transfield or Hadley?
In specific industries - Transifled
As a whole for remoteness - Hadley
