Damages for breach of contract Flashcards
(17 cards)
What is the basic framework for damages for breach of contract?
1) beach + losses being sought
2) measure of loss
3) non-pecuniary loss
4) causation
5) remoteness
6) mitigation
What is the rule given by Park B in Robinson v Harman?
primary purpose of damages for BofC is to place innocent party in position they would have been had the contract been performed properly
Who and in what case gave the rule of the common law under expectation interest?
Park B in Robinson v Harman
What are the 3 ways of calculating expectation interest?
1) difference in value
2) cost of cure
3) loss of amenity
How do you calculate the difference in value under expectation interest?
market value of the performance that D promised minus the value actually given
What is the cost of cure?
substitute or replacement performance
What is an example case of the cost of cure?
Ruxley Electronics and Construction Ltd v Forsyth
What happened in Ruxley Electronics and Construction Ltd v Forsyth?
Ruxley was contracted to build swimming pool for Forsyth at 7ft 6in but it was only 6ft 9in, pool was safe and usuable but F sued for cost of rebuilding (£21,560), held cost of cure was disproportionate to benefit gained
What is the general rule under non-pecuniary loss?
damages for mental distress are not recoverable unless the very object of the contract is to provide peace, pleasure or relaxation
Who said and in what case that the exception for no damages for mental distress is if the contract was meant to provide peace, pleasure and relaxation?
Bingham LJ in Watts v Morrow
What case is an example of a contract for peace, pleasure and relaxation?
Jarvis v Swan Tours
What happened in Jarvis v Swan Tours?
J booked holiday through ST, brochure made multiple promises including welcoming host, good skiing and lots of people, holiday was disappointing as the activities were not as described and there were few people, Court of Appeal held J was entitled to damages for his disappointment
What is important when establishing causation?
breach must be a dominant or effective cause of the loss
What is important under remoteness?
the type of loss needs to be foreseeable and a greater degree of probability is required compared to tort
What is a case example of remoteness?
Supershield Ltd v Siemens Building Technologies FE Ltd
What happened in Supershield Ltd v Siemens Building Technologies FE Ltd?
law firm’s office flooded after sprinkler overflow system became blocked, damage to electrical equipment, supershield had installed sprinkler system and argued failure of valve unlikely to result in flood as it should have escaped through drains, CA held supershield had assumed a contractual duty to prevent water from escaping
What is the key rule under mitigation?
injured party should take all reasonable steps to mitigate (reduce) their loss
