Remedies-Compensatory Damages Part 2 Flashcards
2 categories of a recoverable loss.
- Expectation loss/loss of bargain
- Reliance loss
What position do expectation loss damages put the C in?
Puts the C in the position they would have been had the contract been performed
What position do reliance loss damages put the C in?
Puts the C in the position had the contract never been formed.
Why are expectation and reliance loss mutually exclusive?
To prevent double recovery of damages
What is restitution?
Repayment of any money or other benefits passed to the D in advance of the contract that is breached.
4 ways to assess the awards of damages in contract claims for expectation losses.
- Difference in value between the goods or services required in the contract and those actually provided.
- Where there is a market, damages will be difference between the contract price and the price in the market.
- Loss of profit not just for goods but also other contracts.
- Loss of a chance (speculative damages)
Case for difference in value of goods/services provided and required.
Bence Graphics International Ltd v Fasson UK Ltd (1996)
Facts of Bence.
D supplied vinyl film on which the C printed identifying markers on bulk containers.
Was an implied term that the decals would but readable for 5 years but were only for 2.
Court awarded damages amounting to loss incurred in replacing the decals.
Cases for expectation loss decided on the basis of market value.
Charter v Sullivan (1957)
W L Thompson Ltd v Robinson Gunmakers Ltd (1955)
Facts of Charter.
D contracted to buy a car then refused to take delivery.
Because demand for this particular car outstripped supply, the seller could easily sell the car and make his profit.
Awarded nominal damage.
Facts of W L Thompson Ltd.
D buys a car Vanguard but later refused to accept and pay for it.
Supply of this model exceeded the demand.
Damages awarded for loss of profit.
Case for loss of profit not just for good but other contract.
Victoria Laundry Ltd v Newman Industries Ltd (1949)
What are reliance loss damages based on?
The expense incurred by a C who relied on a contract being performed.
C may also recover expenses he or she has had to spend in advance of a contract that has been breached.
Case for reliance loss.
Anglia Television Ltd v Reed (1972)
Facts of Anglia Television Ltd.
Anglia spent money preparing for a film including fees paid to the director, designer and stage manager.
Robert Reed, an American actor, agreed to be the main actor but the pulled out and the film could not be made.
As Anglia could not predict what the profit would have been on the film, the court awarded damages based on reliance loss (i.e. what they had already spent.)
