Contract Remedies Flashcards
Compensatory damages
Breach of any term gives right to damages.
Not to punish defendant but put claimant in position prior.
Expectation loss
If the claimant is to be placed in the position he would have been in if the contract had been properly performed, he will generally be able to recover for the loss of the benefit which he would have obtained had the contract been properly performed.
Reliance loss
(Anglia Television v Reed)
Damages for all of the expenditure which they had wasted on the production, which included such things as director’s fees, designer’s fees and stage manager’s fees.
Lost opportunity damages
(Chaplin v Hicks)
The Court of Appeal decided that the claimant was entitled to damages to compensate her for the loss of the chance.
Loss of profit
The claimants could only recover losses which were in the reasonable contemplation of the parties which included the loss of profit that could be expected from the lack of use of the boiler.
Two limbs of judgement
The first part is measured objectively according to what loss is a natural consequence of the breach.
The second is subjective, based on the specific knowledge of the potential losses in the minds of both parties when the contract is formed.
(Hadley v Baxendale)
Mitigation
The claimant cannot recover damages for losses which he could have avoided by taking reasonable steps.
If the claimant does take reasonable steps to mitigate, he can claim any expenses incurred in trying to mitigate even if his attempt is unsuccessful.
Specific performance
Specific performance is an order from the court which requires a party to perform his contractual obligations. Failure to comply with the order will be contempt of court.
Restrictions of specific performance
- Contract requires supervision from court
- Damages are adequate
