LAW P3 CONTRACT (Remedies) Flashcards
(12 cards)
What is the main type of common law remedy for breach of contract?
The main type of common law remedy for breach of contract is damages.
What are compensatory damages and their aim?
This is an award of money in order to compensate the injured party.
The aim is to place the party into the position they would have been in if the contract had been performed.
What are the 2 main categories of damages available to the injured party?
- Liquidated damages
- Unliquidated damages
What are liquidated damages?
Liquidated damages operate when both parties to the contract have fixed an amount of damages in a clause in the contract that would be paid should there be a breach of contract
What is the case for liquidated damages?
Dunlop pneumatic tyre co v new garage and motor co, the case set out a test to differentiate between liquidated damages and penalties
What are unliquidated damages?
Unliquidated damages are when there is no fixed amount of damages in the contract, then the courts can fix an amount based on the actual loss.
The courts will look at the principle of placing the party in the position they would have been in if the breach had not occurred.
What are the main tests for unliquidated damages?
- Causation
- The remoteness of loss
- Duty to mitigate the loss
What are equitable remedies?
Unlike common law remedies, equitable remedies are not ‘as of right’ and are instead at the discretion of the courts.
What are the 2 equitable remedies?
- Specific performance
- Recission
What is specific performance?
Specific performance requires the defendant to carry out their agreed obligations under the contract.
What is the case for specific performance?
de francesco v barnum, the contract was so disadvantageous that the court would grant neither an injunction or require specific performance
What is recission?
Recission is an attempt to place the parties to the contract in the position they were in before they entered the contract. It is an attempt to unpick the contract.
Recission is available where a contract is voidable as a result of a vitiating factor such as misrepresentation or economic duress.
