Damages

Question 1

what’s the ultimate principle for expectation loss

Answer 1

To place the party in the same sitution as if the contract had been performed

Question 2

How can we calculate expectation loss?

Answer 2

(1) lost of profit
(2) difference in value
(3) cost of cure

Question 3

What’s the limitations in applying cost of cure

Answer 3

(1) not include consumer surplus

(2) not applicable when there is little difference in value

Question 4

What’s 2 criteria in applying cost of cure?

Answer 4

(1) the award not out of all proportion to the benefits to be obtained
(2) the cure is intended to be completed with the damages awarded.

Question 5

What’ s the swimming pool case? What’s its ruling ?

Answer 5

The Ruxley, the award should not be out of all proportion.

Question 6

What if the expectional loss is speculative? what’s the leading case?

Answer 6

depends on whether the loss is “assessable, definite” benefits . Caplin v Hicks (beauty pageant)

Question 7

Name four limitations on claiming damages

Answer 7

(1) mitigation
(2) remoteness
(3) causation
(4) non-penuniary nature

Question 8

Non-pecuniary loss is generally not recoverable except for ?

Answer 8

(1) physical incovenience

(2) it goes to the very object of the contract is to provide pleasure /relaxation (holiday case) /loss of amenity

Question 9

what ‘s the more liberal approach for the very object tesr

Answer 9

a significant reason for entering into the contract

Question 10

What if mitigation wipes out the losses

Answer 10

nominal damage only

Question 11

what is the test for remoteness

Answer 11

Hadley v Baxendale - two limb test

(1) liable for normal loss - naturally arising from the breach, according tot he usual course of things
(2) liable for special loss only if D has special knowledge of that - arising from special circumstances

Question 12

What is the noval approach for test of remoteness

Answer 12

in the Archilleas, the test of remoteness is “did the parties intend that the D were assuming responsibility for the type of loss.

Question 13

What’s the date of assessment of the damages

Answer 13

at the time of breach except

(1) latent defect when the defect becomes reasonable discoverable
(2) breaching party trying to make good his defect - such possibility disappears
(3) date of acceptance of the anticipatory breach