Remedies for breach of contract

Question 1

What is the general rule courts follow in awarding damages?

Answer 1

They try to put C in same position prior to breach.

Question 2

What is an expectation loss?

Answer 2

Damages to recover expectations of contract

Question 3

What is a reliance loss?

Answer 3

Damages for expenses incurred because of reliance on contract being performed

Question 4

What is the rule with remoteness of damages?

Answer 4

It must have been within the reasonable contemplation of the parties (whether likely consequence of the breach).

Question 5

What is the rule with mitigation of losses?

Answer 5

C can’t let losses pile up, must take reasonable steps to reduce it.

Question 6

What is the difference between Specific damages and penalty clause ?

Answer 6

Special damages clause is a genuine attempt to pre-establish loss.

A penalty clause is absurd amount to put pressure on performing contract.

Question 7

What are the equitable and other remedies for breach of contract?

Answer 7

• Action for agreed sum
• Specific performance
• injunction
• restitution

Question 8

Can specific performance and injunction be used for employment contracts ?

Answer 8

Specific performance cannot but injunction can