Chapt 7 Topics/ Pols (with Rel Cases)

Question 1

What remedies are available on breach?

Answer 1

Main remedies are-

Common law remedy of damages

And repudiation (for breach of condition)

Equitable remedies including specific performance and injunction and Rescission by mutual consent . … A court may decline to rescind a contract if one party has affirmed the contract by his action (Long v Lloyd 1958) or a third party has acquired some rights or there has been substantial performance in implementing the contract.

Question 2

Additional rights under CRA 2015

Use only for business- consumer (not consumer/consumer or business/business)

For goods

For digital media

And for services

Which section numbers?

Answer 2

Goods:

Right enforce terms re goods -s19
short term right to reject (s20-22)
Right to repair/replacement(s23)
Right to price⬇️or final right to reject(s24)

Digital media:
Repair/replacement (s43)
Price ⬇️(s44)
Refund(s45)
Remedy for damage to device or other digital content (s46)

Services
Right to repeat performance (s55)
Right to price ⬇️(s56)

Question 3

What is the meaning/purpose of damages in contract?

Answer 3

Case example and answer

Robinson v harman 1848

Money aimed at putting innocent party in the position he would have been had the contract been properly performed

Question 4

What are the two requirements for claiming damages?

And which cases?

What can d counterclaim to prevent c?

Answer 4

Breach caused loss (factual- but for) Smith Hogg and Co v Black Sea - need not be the only cause but must be substantial cause

Loss not too remote (legal)
-Hadley v Baxendale 1854 (2 limbs-

1. losses that may fairly and reasonably be considered as arising naturally (that is, according to the usual course of things) from the breach; and
2. losses that may reasonably be supposed to have been in the contemplation of the parties at the time when they made the contract as the probable result of the breach of it.

Victoria laundry 1949
The Heron 2 1969
Transfield shipping 2008

D may counter that c did not seek to mitigate the loss

Question 5

Outline the 2 heads of damage

Relevant cases?

Answer 5

Non pecuniary(general)not usually but…
- loss of enjoyment
-inconvenience
-distress
Cases: Jarvis v Swan tours 1973 (object of c is for pleasure and relaxation)
/ Farley v skinner 2001(pleasure need not be the sole point of contract AND breach caused physical inconvenience▶️mental suffering)

Pecuniary (special)

• reliance loss (Anglia tv v reed) comp given 4 wasted expenditure
• expectation loss/ loss of bargain(Ruxley v Forsyth 1996)- cover profits they expected to get
• consequential loss- can only be claimed if forseeable and not too remote

Question 6

What are the 3 common equitable remedies?

Definition of both

Answer 6

Specific performance
A court order telling the party in breach to fulfil his obligations. Discretionary remedy. Not given if damages would be adequate
Generally not granted if its effect will force someone to perform a contract for personal services

Injunction
Court order telling party to contract not to do something. Discretionary remedy.

Rescission
To take back as though never existed

Question 7

When are these equitable remedies used?

Answer 7

Where damages inadequate or instead of or as well as damages
I.e.- where money damages won’t properly fix the damage

At courts discretion

Question 8

Criteria used for granting equitable remedies

Answer 8

Used if damages will not be sufficient

Question 9

Non pecuniary damages.

Exceptions to the rule that they aren’t usually paid
2 exceptions and 2 cases

Answer 9

1. Where the object of the contract is to provide pleasure, relaxation, peace of mind or freedom from distress. Jarvis v Swan Tours (1973) – damages were recoverable for disappointment and distress. And Jackson v horizon holidays
2. Need not be the sole point of the contract AND the breach causes physical inconvenience and discomfort which leads to mental suffering. Farley v Skinner (No 2) (2001)

Question 10

What must c show to claim damages?

Answer 10

An award of damages in contract law is subject to the application of the rules on causation, remoteness and a duty to mitigate loss.

Causation:- breach of contract caused the loss
“But for”
Causation in fact may be established by showing that the breach was a substantial cause of the loss suffered, not that it was the only cause of loss: Smith Hogg and Co v Black Sea

Remoteness
a claimant may only recover losses which may reasonably be considered as arising naturally from the breach or those which may reasonably be supposed to be in the contemplation of the parties at the time the contract was made: (Hadley v Baxendale)

Question 11

What are damages?

Answer 11

-Money compensation
Money aimed at putting innocent party in the position he would have been had the contract been properly performed

**Available as a right if a loss has occurred as a result of a breach **

-Damages are an award of money to compensate the innocent party. The primary purpose of damages in contract law is to place the injured party in the position they would have been in had the contract been performed.
(Robinson v Harman)

Question 12

What is Hadley v Baxendale about?

Answer 12

Remoteness and forseeability
2 limbs
Legal causation

Question 13

For causation you must show that..

3

Answer 13

1. Factual/ but for
   The breach caused the loss
   (Smith Hogg and Co v Black Sea )
2. Legal causation /remoteness
   Hadley v Baxendale (2 limbs)
3. C Must mitigate losses