Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Law Paper 3 - Contract + Synoptic Essay's > Contract Remedies > Flashcards

Contract Remedies Flashcards

(110 cards)

Start Studying
1
Q

What are damages?

A

A sum of money paid by the defendant to the claimant once liability is established in compensation for the harm suffered by the claimant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What case defined the purpose of damages?

A

Robinson vs Harman

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is Baron Parke’s quote from Robinson vs Harman?

A

The purpose of damages is to put the victim into the same position he would have been in if the contract had not been broken but had been performed in the manner and at the time intended by the parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 2 tests used to assess an award for an unliquidated sum of damages in contract law?

A
  1. Concerns the loss in respect of which the claimant can recover
  2. Concerns the quantity of damages available
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does the first test used to assess an award for an unliquidated sum of damages concern?

A

Causation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the general principle regarding an award of damages and causation?

A

A causal link has to be proved between D’s breach of contract and the damage suffered by the claimant

Damages will not be awarded when the loss suffered is too remote a consequence of D’s breach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the POL from London Joint Stock Bank vs MacMillan?

A

If a loss arises partly from the breach and partly as a result of intervening events, the party in breach may still be liable provided that the chain of causation is not broken

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What case states that ‘If a loss arises partly from the breach and partly as a result of intervening events, the party in breach may still be liable provided that the chain of causation is not broken’?

A

London Joint Stock Bank vs MacMillan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the POL from Stansbie vs Troman?

A

The decorator was liable for the loss which resulted from his failure to comply with his contractual duty to secure the premises properly when leaving

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What case states that ‘The decorator was liable for the loss which resulted from his failure to comply with his contractual duty to secure the premises properly when leaving’?

A

Stansbie vs Troman

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What case did the test of remoteness of damage come from?

A

Hadley vs Baxendale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the quote from Hadley vs Baxendale regarding the test of remoteness of damage?

A

The damages which the other party ought to receive in respect of a breach of contract should be such as may fairly and reasonably be considered either naturally or such as may be supposed reasonably to have been in the contemplation of both parties at the time they made the contract as the probable result of the breach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the POL from Hadley vs Baxendale?

A

The courier was unaware of the importance of a prompt delivery so wasn’t liable for the damages suffered by the mill

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Due to the ruling in Hadley vs Baxendale, how is the remoteness of damage test carried out?

A

In 2 parts - Objectively and subjectively

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the objective remoteness of damage test?

A

What loss was a natural consequence of the breach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the subjective remoteness of damage test?

A

Specific knowledge of potential losses in the mind of both parties when the contract is formed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the POL from Victoria Laundry vs Newman Industries?

A

They could sue for the loss of normal profits as that was a natural consequence of breach but not for the loss of the government contract as that was unknown to the defendants when the contract was formed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What case backs up Hadley vs Baxendale and the 2-stage remoteness of damage test?

A

Victoria Laundry vs Newman Industries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the POL from Koufos vs C Czarnikow (The Heron II)?

A

The claim for lost profits was seen as too remote to the CoA as it was unknown to the defendant that the sugar was going to be resold

However, House of Lords said that the fact the sugar was going to be resold was implied knowledge as the delivery was to a known sugar market, so it was a natural consequence of the breach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What case states that implied knowledge is enough to constitute the damage to be a natural consequence of the breach

A

Koufos vs C Czarnikow (The Heron II)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the POL from H Parsons vs Uttley Ingham?

A

The loss was considered within the remoteness of damage parameters, and they could sue for the damages suffered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What case states that ‘The loss was considered within the remoteness of damage parameters, and they could sue for the damages suffered’?

A

H Parsons vs Uttley Ingham

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the POL from Jackson vs Royal Bank of Scotland?

A

The termination of the contract was a clear consequence of the bank’s breach of contract and confidentiality so it should have been contemplated that this would be the result of the breach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What case states that ‘The termination of the contract was a clear consequence of the bank’s breach of contract and confidentiality so it should have been contemplated that this would be the result of the breach’?

A

Jackson vs Royal Bank of Scotland

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What case contrasts Victoria Laundries vs Newman Industries surrounding remoteness of damage?
Transfield Shipping vs Mercador Shipping
26
What is the POL from Transfield Shipping vs Mercador Shipping?
The test for remoteness of damage also includes whether the damage is of a type that the defendant ought reasonably to have accepted responsibility for - this contrasts Victoria Laundries vs Newman Industries
27
What are nominal damages?
When no loss is actually suffered but breach has been established - normally when the claimant wants there to be a declaration that the contract is at an end
28
What is the POL from Staniforth vs Lyall?
As the owner of the boat suffered no loss he was awarded nominal damages to gain the declaration that the contract was at an end
29
What case states that 'As the owner of the boat suffered no loss he was awarded nominal damages to gain the declaration that the contract was at an end'?
Staniforth vs Lyall
30
What is the POL from Experience Hendrix vs PPX Enterprises?
Substantial damages were awarded traditionally but nominal damages were considered more appropriate
31
What is the case that states that 'Substantial damages were awarded traditionally but nominal damages were considered more appropriate'?
Experience Hendrix vs PPX Enterprises
32
What are the 3 bases for assessing awards of damages?
Loss of a bargain Reliance Loss Restitution
33
What is a loss of a bargain?
Idea is to put the claimant in the same financial position that he would have been if the contract was properly performed
34
What case states that if there is a difference of inferior value to a product or service provided in a contract then the claimant can sue to bring their financial position up to which it would have been in if the contract was completed to the suggested quality?
Bence Graphics International vs Fasson UK
35
What is the POL from Bence Graphics International vs Fasson UK?
CoA said that the claimants could recover the actual loss suffered from the inferior quality compared to what was stated in the contract to bring them up to the contract's original quality
36
What case states that if a claimant's ability to make profit remains then there is no entitlement to damages?
Charter vs Sullivan
37
What is the POL from Charter vs Sullivan?
There was no interference in the claimant's ability to sell the car, so he only recovered nominal damages
38
What case states that if there is no available market then the claimant can recover the full loss?
W L Thompson vs Robinson Gunmakers
39
What is the POL from W L Thompson vs Robinson Gunmakers?
When the buyer breached, he was unable to sell the car due to the lack of an available market, so he was able to recover full damages
40
What is a loss of profit under the loss of a bargain?
A claimant may recover for the profit he would have been able to complete but for the breach of contract
41
What is a loss of chance under the loss of a bargain?
In rare circumstances, claimants can recover a loss that is speculative, although generally in contract law a speculative loss is not recoverable
42
What is the POL from Chaplin vs Hicks?
Even though she had a 24% chance of gaining work from the auditions the courts still awarded her £100 of compensation for being wrongly prevented from attending the auditions
43
What is the case for loss of chance?
Chaplin vs Hicks
44
What is a reliance loss?
A claimant may be able to recover expenses he has had to spend in advance of a contract that has been breached
45
When will a reliance loss claim usually be made?
When any loss of profit is too speculative to be able to be calculated effectively
46
What is the POL from Anglia Television vs Reed?
The reliance loss of the actor backing out before the film was much easier to account for than any loss of profit
47
What case states that 'The reliance loss of the actor backing out before the film was much easier to account for than any loss of profit'?
Anglia Television vs Reed?
48
Is it possible to recover a loss of profits and a reliance loss at the same time, and why?
Not normally because it is said to be compensating twice for the same loss
49
When can you recover both a loss of profits and a reliance loss at the same time?
When the claim for lost profits concerns net profit not gross profit which would include the reliance loss
50
What is the POL from Western Web Offset Printers vs Independent Media?
Since the claimant had no alternative for the workforce the whole claim, including the labour costs and overheads could be recovered
51
What case states that it is also sometimes possible to recover damages for the loss of a valuable amenity?
Farley vs Skinner
52
What is the POL from Farley vs Skinner?
House of Lords said that for a loss of amenity to succeed, it was not essential for the contract to be one the object of which was to provide please/relaxation etc.
53
What is restitution?
Repayment of any money or other benefits passed to the defendant in advance of the contract that is breached
54
What does restitution inevitably have to do with in contract law?
Consideration and the presence or absence of consideration may determine the appropriateness of the remedy
55
What is the POL from Stocznia Gdanska SA vs Latvian Shipping?
The true test of whether there was a failure of consideration was not based on whether the buyer had received nothing under the contract but on whether the seller had done nothing under the contract
56
What is the POL from Addis vs The Gramophone Company?
Refused a claim of injury to his reputation and mental distress as Lord Atkin said the proper place for that claim is the Tort of Defamation - he recovered only the loss of salary and commission owed
57
What case states that recovery of a claim in contract law that is more suited to tort law is usually rejected?
Addis vs The Gramophone Company
58
What is the POL from Jarvis vs Swan Tours?
CoA upheld his claim for disappointment and mental distress alongside the inferior quality of the holiday which would normally suit tort law
59
What is the case that covers mental distress and disappointment as a claim in contract law?
Jarvis vs Swan Tours
60
What is the POL from Cook vs Spanish Holidays?
A honeymoon couple were left without a room on their wedding night, and they were awarded damages for loss of enjoyment
61
What case covers loss of enjoyment as a claim in contract law?
Cook vs Spanish Holidays
62
What is the POL from Jackson vs Horizon Holidays?
The claimant can recover for his own and his family's mental distress when the provision of comfort, pleasure and peace of mind are a central feature of the contract
63
What case states that 'The claimant can recover for his own and his family's mental distress when the provision of comfort, pleasure and peace of mind are a central feature of the contract'?
Jackson vs Horizon Holidays
64
What is the POL from Heywood vs Wellers?
Was awarded damages for mental distress where her solicitors failed to obtain an injunction to prevent her former boyfriend from molesting her
65
What case states that a claimant can recover losses for mental distress due to certain problems caused by solicitors?
Heywood vs Wellers
66
What is the POL from Roxley Electronics and Construction vs Forsyth Laddington Enclosures vs Forsyth?
Swimming pool built 6 inches shallower than stated allowed claimant to sue for loss of safely enjoying the pleasure of diving into the pool
67
What case covers a 'Swimming pool built 6 inches shallower than stated allowed claimant to sue for loss of safely enjoying the pleasure of diving into the pool'?
Roxley Electronics and Construction vs Forsyth Laddington Enclosures vs Forsyth
68
What is the POL from Hayes vs James and Charles Dodd?
Recovery for mental distress should not include any case where the object of the contract was not pleasure or comfort or the relief of discomfort, but simply carrying on a commercial contract with a view to profit
69
What is the case that states that 'Recovery for mental distress should not include any case where the object of the contract was not pleasure or comfort or the relief of discomfort, but simply carrying on a commercial contract with a view to profit'?
Hayes vs James and Charles Dodd
70
What is the POL from Woodar Investment Development vs Wimpey Construction?
The principle of recovering for mental distress is restricted to holiday cases
71
What case stated that 'The principle of recovering for mental distress is restricted to holiday cases'?
Woodar Investment Development vs Wimpey Construction
72
What is the duty to mitigate?
The injured party must take reasonable steps to minimise the effects of the breach and any failure to do say may be taken into account when awarding damages
73
What is the POL from British Westinghouse Electric and Manufacturing vs Underground Electric Railways Co of London?
Losses sustained before the originals were replaced were recoverable not the difference in price of the different turbines as the better efficiency paid for that already
74
What case states that 'Losses sustained before the originals were replaced were recoverable not the difference in price of the different turbines as the better efficiency paid for that already'?
British Westinghouse Electric and Manufacturing vs Underground Electric Railways Co of London
75
What is the POL from Pilkington vs Wood?
A claimant is not bound to go to extraordinary lengths to mitigate the loss, only to do what is reasonable in the circumstances - in this instance, he did do all that was reasonable
76
What is the case that states that a claimant is not bound to go to extraordinary lengths to mitigate the loss, only to do what is reasonable in the circumstances?
Pilkington vs Wood
77
What is the POL from White and Carter vs McGregor?
In an anticipatory breach, the claimant is not bound to sue immediately as he knows of the possibility of the breach
78
What is the case that states that 'In an anticipatory breach, the claimant is not bound to sue immediately as he knows of the possibility of the breach'?
White and Carter vs McGregor
79
When are liquidated damages available as a remedy?
When the parties have fixed the amount in the contract that will be available in the event of a breach
80
Under what conditions are liquidated damages accepted as a remedy?
When the sum identified represents an accurate and proper assessment of loss - if not it is seen as a penalty and is unenforceable
81
What is the POL from Bridge vs Campbell Discount?
A depreciation clause in a hire-purchase agreement for a car bore no relation to actual depreciation in value so the clause was declared as a penalty
82
What case illustrates a clause that is declared as a penalty
Bridge vs Campbell Discount
83
What is the POL from Dunlop Pneumatic Tyre Co vs Neul Garage and Motor Co?
House of Lords accepted that the sum represented a genuine assessment so was not a penalty
84
What case illustrates a clause that is a genuine assessment and therefore not a penalty?
Dunlop Pneumatic Tyre Co vs Neul Garage and Motor Co
85
What does Lord Dunedin's test state under liquidated damages?
1. An extravagant sum will always be a penalty 2. Payment of a large sum for failure to settle a small debt is probably a penalty 3. A single sum operating in respect of a variety of different breaches is likely to be a penalty 4. The wording used by the parties is not necessarily conclusive
86
What is quantum meruit?
Recovery of an unqualified sum for services already rendered
87
What is a situation in which an award of quantum meruit is given?
In a contract for services that is silent on the issue of remuneration
88
What is the case for quantum meruit in a contract for services that is silent on the issue of remuneration?
Upton RDC vs Powell
89
What is the POL from Upton RDC vs Powell?
A retained fireman provided services with no fixed agreement as to wages, so the court awarded a reasonable sum in the circumstances
90
What is the second situation in which an award of quantum meruit is given?
Where the circumstances of the case show that a fresh agreement can be implied in place of the original one
91
What is the case for quantum meruit where the circumstances of the case show that a fresh agreement can be implied in place of the original one?
Steven vs Bromley
92
What is the POL from Steven vs Bromley?
When Steven delivered the steel, it contained extra goods so he could claim extra for carrying them too
93
What is the third and final situation in which an award of quantum meruit is given?
Where a party has elected to consider the contract discharged by the other's breach or where a party has been prevented from performing by the other party; in either case they might claim for work they have already done
94
What is the case for quantum meruit where a party has elected to consider the contract discharged by the other's breach or where a party has been prevented from performing by the other party?
De Barnady vs Harding
95
What is the POL from De Barnady vs Harding?
The agent was able to claim for the work he had already done and for expenses incurred before his revocation of authority
96
What are equitable remedies?
Operate where an award of damages is an inadequate remedy
97
The type of equitable remedy awarded is at who's discretion?
The court
98
What is recission?
An order returning the parties to their original pre-contract position where it is possible
99
What are the cases for recission?
Clarke vs Dickson Long vs Lloyd Leaf vs International Galleries Oakes vs Turquand
100
What is the POL from Clarke vs Dickson?
Impossible to rescind as it was impossible to return to the pre-contract position
101
What is the POL from Long vs Lloyd?
The purchaser bought a defected lorry but affirmed the contract when he allowed the seller to make multiple repairs to the lorry so he couldn't rescind the contract
102
What POL from Leaf vs International Galleries?
He waited too long to seek rescission as he waited 5 years and has thus affirmed the contract
103
What is the POL from Oakes vs Turquand?
No third party have rights to rescission of contracts
104
What is specific performance?
An order for a party to carry out his obligations under the contract
105
What are the cases for specific performance?
Ryan vs Mutual Tontine Falcke vs Gray Webster vs Cecil De Francesco vs Barnum Posner vs Scott-Lewis
106
What is the POL from Ryan vs Mutual Tontine?
Specific performance was refused as the court could not supervise the work of the hall porter
107
What is the POL from Falcke vs Gray?
Specific performance is granted when the matters of the contract are unique in some way so that it cannot be replaced in an 'available market' - like valuable artwork
108
What is the POL from Posner vs Scott-Lewis?
Specific performance was awarded for a hall porter as the landlord had failed to employ one
109
What is the POL for De Francesco vs Barnum?
Specific performance was denied in the case of a breach of a contract of apprenticeship - It is never available in a contract of service
110
What is the POL from Webster vs Cecil?
Specific performance will not be awarded where the claimant's actions in seeking the order are unconscionable - “If it’s really obvious that it was just a simple mistake, and the other person knew it was probably a mistake, you can’t take advantage of it.”

Law Paper 3 - Contract + Synoptic Essay's (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions