REMEDIES; COMPENSATORY

Question 1

What are remedies in contract law divided into? (3)

Answer 1

-legal remedies
-equitable remedies
-remedies under specific statute

Question 2

what are legal remedies? (1)

Answer 2

legal remedies are available against a person in breach of contract as of right. these can be damages or remedies against the goods.

Question 3

what are equitable remedies? (1)

Answer 3

equitable remedies are discretionary, this means you do not have the right to an equitable remedy , but the court may award one if it thinks the legal remedies are not the most appropriate remedy in the circumstances.

Question 4

what are compensatory damages? (1)

Answer 4

a claim for damages is always available as of right, to the claimant when a contractual term has been broken. The purpose of damages is to put the victim in the position he or she would have been in if the contract had been properly completed and performed by the defendant.

Question 5

what are damages usually awarded for? (1)

Answer 5

damages are normally awarded for expectation loss (loss of a bargain) or reliance loss )wasted expenditure)

Question 6

what are the types of damages? (2)

Answer 6

-nominal damages
-speculative damages

Question 7

what are nominal damages? (1)

Answer 7

if no loss is actually suffered but there is a breach, the court may award nominal damages.

Question 8

what case covers nominal damages? (2)

Answer 8

Staniforth v Lyall (1830)
experience hendrix LLC and PPX enterprise inc. (2003)

Question 9

what occurred in the case of staniforth v lyall and when was it? (3)

Answer 9

Lyall was under contract to load cargo onto a boat which he failed to do, the claimant sued for breach which the court granted all in the while he was hiring someone else to do the same thing. Since he suffered no real loss he was only awarded nominal sums. (1830)

Question 10

what occurred in the case of experience hendrix LLC v PPX enterprises inc and when was it? (3)

Answer 10

court awarded substantial damages where it was thought nominal damages might have been more fitting. The court stated that the defendants should make a reasonable payment for its uses of master recordings in breach of the settlement agreement. (2003)

Question 11

what did the wrotham park award stem from? (1)

Answer 11

Wrotham estate co. ltd v parkside homes ltd (1974)

Question 12

what occurred in the case of wrotham estate co. ltd v parkside homes ltd and when was it? (3)

Answer 12

the defendant ignored a restrictive covenant preventing building on land, the claimant asked the court for an injunction of demolishment but in doing so would be unfair of the house inhabitants. the court awarded damages to represent the amount the claimant would have accepted in release of this restrictive covenant. (1974)

Question 13

what did the wrotham park award try to do? (1)

Answer 13

wrotham park damages tried to quantify the sum which might reasonably have been negotiated between the parties for giving permission to the wrongdoer to act as he or she did.

Question 14

what case highlights the ambiguity of wrotham park damages? (1)

Answer 14

Morris-Garner v onestep (support) ltd (2016)

Question 15

what occurred in the case of Morris-Garner v onestep (support) ltd and when was it? (3)

Answer 15

it stated that wrotham park damages will be awarded where the claimant would have very real problems in establishing financial loss, it is a ‘just’ response to a breach of contract such damages should not be restricted to exceptional circumstances. (2016)

Question 16

what are speculative damages? (1)

Answer 16

loss of a chance of a benefit that has been denied to the claimant as a result of a breach of contract.

Question 17

what occurred in the case of Addis v the gramphone company and when was it? (3)

Answer 17

the court refused a claim for damages in contract for injury to reputation and the mental distress caused by the humiliating manner of Mr Addis’s dismissal from his job as this was a matter for the law of tort. He was awarded damages only for the loss of salary and commission owed (1909)

Question 18

what cases cover speculative damages? (3)

Answer 18

Addis v Gramphone company (1909)
Chaplin v Hicks (1911)
ruxley electronics and construction ltd v Forsyth (1996)

Question 19

what occurred in the case of Chaplin v Hicks and when was it? (3)

Answer 19

Claimant was deprived of chance to take part in a beauty contest and become an actor. she was awarded damages on the basis that she had been deprived of a 24% chance of being engaged as an actor. (1911)

Question 20

what case did damages for loss of amenity stem from? (1)

Answer 20

ruxley electronics and construction ltd v Forsyth (1996)

Question 21

what occurred in the case of ruxley electronics and construction ltd v forsyth and when was it? (3)

Answer 21

Builder built pool at 1 10% depth difference to originally intended, court awarded him damages for loss of amenity as awarding his damages to have the pool redone were completely unreasonable as there was nothing wrong with the pool other than the depth. (1996)

Question 22

what must the clamant do in order to gain damages? (1)

Answer 22

the claimant must prove that the breached caused thee loss, not just provided the opportunity for loss, this is similar to the but for test in criminal law. If the loss would have happened in any event, then the breach could not be said to have caused the loss.

Question 23

what case did the test of remoteness stem from? (1)

Answer 23

Hadley v Baxendale (1854)

Question 24

what occurred in the case of Hadley v Baxendale and when was it? (3)

Answer 24

The mill relied on the delivery, the delivery driver was late and the claimant sued for damages unsuccessfully because the delivery driver did not know the importance of the delivery. (1854)

Question 25

what are the parts of the remoteness test? (2)

Answer 25

-the first part is measured objectively according to what loss is a natural consequence of the breach
-the second is subjective, based on specific knowledge of potential losses in the minds of both parties where the contract is formed

Question 26

what case developed the remoteness test further? (1)

Answer 26

victoria laundry ltd v Newman industries ltd (1949)

Question 27

what occurred in the case of victoria laundry ltd v Newman industries ltd and when was it? (3)

Answer 27

a laundry company had a boiler delivered 5 months late, their claim for damages succeeded but the claim for a contract that a defendant dint known about did not. (1949)

Question 28

what is the remoteness test? (3)

Answer 28

-recoverable loss should be measured against a test of reasonable foreseeability
-foreseeability of loss itself dependent on knowledge at the time the contract was made
-knowledge is of two types; common knowledge and actual knowledge of the defendant

Question 29

what cases come under causation and remoteness of damage? (4)

Answer 29

hadley v Baxendale (1854)
victoria laundry ltd v Newman industries ltd (1949)
Czarnikow ltd v Koufos (the heron II) (1969)
H parsons (livestock) ltd v Uttley ingham (1978)

Question 30

what occurred in the case of Czarnikow ltd v Koufos (the heron II) and when was it? (3)

Answer 30

the court decided that knowledge can be implied on the basis of what a reasonable man may have contemplated in the circumstances. Buyer of sugar planned to sell sugar promptly upon arrival the ship did not know about this but he knew that price fluctuated on sugar therefore must have contemplated the loss as a possible result of the breach. (1969)

Question 31

what occurred in the case of H Parons (livestock) ltd v Uttley Ingham and when was it? (3)

Answer 31

Many pigs died as a result of mouldy peanuts which would not have gone mouldy if the defendfants had not forgotten to open the ventilator, the court decided that the death of the pigs would have been in contemplation of the parties when they made the contract therefore damages were not too remote. (1978)

Question 32

what case stated that it wwas crucial to understand the intentions of both parties? (1)

Answer 32

Transfield shipping inc. v Mercador shipping inc. (the achilleas) (2008)

Question 33

what occurred in the case of Transfield shipping inc. v Mercador shipping inc. (the achilleas) and when was it? (3)

Answer 33

suggested that the test also concerns whether the damage is of a type that the defendant ought reasonably to have accepted responsability for.

Question 34

what happens after the tests of causation and remoteness have established liability? (1)

Answer 34

the court has to determine how much the claimant can recover.

Question 35

what are the categories of recoverable loss? (2)

Answer 35

-loss of bargain
-reliance loss

Question 36

how do the courts deal with loss of a bargain? (1)

Answer 36

the idea here is to place the claimant in the same financial position if the contract had been properly performed.

Question 37

EXAMPLE 1
what are the ways in which a loss of a bargain can be seen? (4)

Answer 37

-the difference in value between the goods or services required if the contract had been properly performed

Question 38

EXAMPLE 2
What are the ways in which a loss of a bargain can be seen? (4)

Answer 38

-where there is a market, damages will be the difference between the contract price and the price in the market, if the claimants profit remains, there is no loss

Question 39

EXAMPLE 3
What are the ways in which a loss of a bargain can be seen? (4)

Answer 39

loss of profit not just goods

Question 40

EXAMPLE 4
What are the ways in which a loss of a bargain can be seen? (4)

Answer 40

Loss of chance, a speculative loss

Question 41

what cases cover example 1 in terms of loss of bargain? (1)

Answer 41

Bence graphics international ltd v Fasson UK ltd (1996)

Question 42

what occurred in the case of Bence graphics international ltd v Fasson UK ltd and when was it? (3)

Answer 42

defendants gave defective printing paper which only lasted for 2 years instead of 5, court awarded damages amounting to actual loss incurred by having to replace the decals. (1996)

Question 43

what cases cover example in terms of loss of bargain? (2)

Answer 43

charter v Sullivan (1957)
W L Thompson ltd v Robinson gunmakers ltd (1955)

Question 44

what occurred in the case of Charter v Sullivan and when was it? (3)

Answer 44

the defendants contracted to buy a car refused to take delivery, the seller could easily sell the car and make his profit therefore only nominal damages were awarded. (1957)

Question 45

what occurred in the case of W L Thompson ltd v Robinson gunmakers ltd and when was it? (3)

Answer 45

Defendant agreed to buy a car but then refused the demand for the car was not the same as the supply, therefore damages were awarded for the loss of profit on one sale. (1955)

Question 46

what case covers example 3 in terms of loss of bargain? (1)

Answer 46

Victoria laundry ltd v Newman industries ltd (1949)

Question 47

what case covers example 4 in terms of loss of bargain? (1)

Answer 47

chaplin v Hicks (1911)

Question 48

what is meant by reliance loss? (1)

Answer 48

this is the expense incurred by the claimant who relied on the contract being performed, a claimant may also recover expenses he or she has had to spend in advance of a contract that has been breached.

Question 49

what cases cover reliance loss? (2)

Answer 49

anglia television ltd v Reed (1972)
Farley v Skinner (2001)

Question 50

what occurred in the case of Anglia television ltd v Reed and when was it? (3)

Answer 50

A Tv producer spent money before the production before the main actor pulled out a suitable replacement could not be found so the film was not made. The courts based damages on reliance loss. (1972)

Question 51

what occurred in the case of Farley v Skinner and when was it? (3)

Answer 51

claimant bought house which he was told was not subject to aircraft noise when it was. Court said that an innocent party was entitled to be placed in the position that he or she would have been in had the party in breach exercised due care. Court awarded for recoverable distress and inconvenience. (2001)

Question 52

What is meat by restitution?(1)

Answer 52

A repayment of any money or other benefits passed to the defendant in advance of the contract that is breached.

Question 53

What is mitigation of loss? (1)

Answer 53

The injured party must take reasonable steps to minimise the effects of the breach.

Question 54

What are covers mitigation of loss? (3)

Answer 54

British Westinghouse electric v underground electric railways (1912)
White and carter (councils) Ltd v McGregor (1962)
Thai airways v K I holdings (2015)

Question 55

What occurred in the case of British Westinghouse electric v underground electric railways and when was it? (3)

Answer 55

The court sad that additional benefits obtained as a result f taking reasonable steps to mitigate loss were to be accounted for when calculating damages. The court will balance loss against gain when calculating the amount of damages.(1912)

Question 56

What is a claimant not forced to do in terms f mitigation of loss? (1)

Answer 56

A claimant is not bound to go to extraordinary lengths to mitigate the loss, nay to do what is reasonable in the circumstances.

Question 57

What case can be used for an anticipatory breach? (1)

Answer 57

White and carter (councils) Ltd v mcgregor (1962)

Question 58

What occurred in the case of white and carter (councils) Ltd v McGregor and when was it? (3)

Answer 58

Courts decided in an anticipatory breach, he or she is not bound to sue immediately he or she knows of the possibility of the breach, but may continue until the breach is an actual breach. He argument that the claimants might have mitigated the loss by not continuing to fit the bins failed as the contract was essentially a claim for a debt - payment of the price - so mitigation of the loss did not apply. (1962

Question 59

What case covers the principle of mitgation in computation of damages? (1)

Answer 59

Thai airways v K I Holdings (2015)

Question 60

What occurred in the case of Thai airways v K I Holdings and when was it? (3)

Answer 60

The claimant relied on a company to delivery it chairs, the company delivered lat or not at all so the company had to rent other aircraft’s to cover this loss, these aircraft’s were more fuel efficient so this had to be taken int account when calculating damages, they were reduced to cover this mitigation. (2015)