Breach & Remedies for Breach: Damages Flashcards
What is the general principle of damages?
Robinson v Harman, the party that suffered due to a breach is to be placed in the same situation as if the contract had been performed
What did the Golden Victory tell us about the general principle?
Damages were addressed at the date of trial in this case, however this is not inflexible and sometimes a different date may be used to achieve the best outcome
What rules of remoteness place restrictions on the general principle?
Hadley v Baxendale,
-Damages should arise naturally (either by natural course of things or reasonably in the contemplation of both parties to occur)
-If special circumstances were communicated from C to D, damages which could be reasonably contemplated would be the amount that would follow from those special circumstances
What case developed the rules of Hadley v Baxendale?
Victoria Laundry v Newman Industries, it was in the ordinary course that new customers could be lost, however not reasonably contemplatable about the contract
What was established in The Heron II?
It must be reasonably foreseeable that loss was not unlikely to result, there must be a serious possibility. Range of phrases used by the judges, unclear of what should be the main dicta, however ‘on the cards’ should not be used
What is the test of assumption of responsibility?
The Achilleas
-Starting point is whether the loss for which compensation is sought is one which the contract breaker ought to
How can mitigation restrict the general principle?
British Westinghouse Electric v Underground Electric Railways, where efficient replacements had been used, losses from breach had been mitigated. Where C has taken steps to mitigate the loss this can be considered
What is the question from Globalia Business Travel v Fulton Shipping Inc?
A benefit received by the innocent party after the breach of contract is relevant to assessment of damages only if it was caused by the breach or by a successful act of mitigation
What case shows contributory negligence can restrict the general principle?
Barclays Bank Ltd v Fairclough Building Ltd, Where the liability for breach of contract is the same as and coextensive with an independent liability in tort, the defence of contributory negligence would apply, however there was no tortious liability in the current case
What is meant by non-pecuniary loss?
Losses other than money, this must be calculated
What case showed mental distress as a type of non-pecuniary loss?
Jarvis v Swan’s Tours, sum of damages was increased to cover mental distress
What is the test of reasonableness in regards to non-pecuniary loss?
Ruxley v Forsyth, whether it is reasonable to award the cost of reinstatement depends on the relative extent of the loss sustained to the cost of reinstatement (must be some form of proportion to the two)
What did Farley v Skinner demonstrate?
Damages can be awarded for mental distress even if pleasure is not the central object of the contract but an important one
What is meant by reliance damages?
Compensation that is given when expenses occur as one party relies on the statement of the other
