Remedies

Question 1

What is compensatory damages?

Answer 1

• Damages normally in form of cash compensation
• Aim to put injured party in position they were in before contract was performed
• Damages can be liquidated or unliquidated
• Liquidated = fixed amount set in contract, in case of event of breach
• Unliquidated = no fixed amount set in contract so courts decide compensation amount
• Mitigation of loss = Look at whether either party did anything to prevent the event happening/worsening

Question 2

What are liquidated damages?

Answer 2

• A fixed amount stated in contract, in case of breach
• If seen as improper then courts can ignore

Question 3

What are unliquidated damages?

Answer 3

• No fixed amount in contract
• Courts look at causation and remoteness of damage
• Courts decide amount compensated

Question 4

What is mitigation of loss in compensatory damages?

Answer 4

• D proves that C did nothing to minimise the loss that occurred
• Courts look at if D just sat back and let the breach get worse

Question 5

What are equitable remedies?

Answer 5

Specific Performance
- Forces D to carry out obligations
- Courts can order specific performance
- If specific performance causes hardship for D, then courts will not order it
Rescission
- Contract is set aside
- Brings parties back into position then were in before entering the contract

Question 6

What is specific performance in equitable remedies?

Answer 6

• Forces D to carry out obligations
• Courts can order specific performance
• If specific performance causes hardship for D, then courts will not order it

Question 7

What is rescission in equitable remedies

Answer 7

• Contract is set aside
• Brings parties back into position then were in before entering the contract

Question 8

What is termination of contract for breach?

Answer 8

Breach occurs when:
>Party doesn’t perform their obligations
>Party fails to reach standards set/expected in contract
>Party unlawfully repudiates contract
- Consequence of breach depends on type of term breached
Breach of Condition
- Can sue for damages and/or repudiation of contract
Breach of Warranty
- Can sue for damages only
Breach of Innominate Term
- Can sue immediately or wait till breach is done and then sue

Question 9

When does breach occur?

Answer 9

When a party:
- Doesn’t perform their obligations
- Fails to reach standards set/expected in contract
- Unlawfully discharges contract

Question 10

What does a breach of condition allow for?

Answer 10

• Can sue for damages
• Can discharge the contract

Question 11

What does breach of warranty allow for?

Answer 11

• Can sue for damages only

Question 12

What does breach of innominate term allow for?

Answer 12

• Can sue immediately or can wait for breach to happen then sue

Question 13

What are the two types of equitable remedies?

Answer 13

• Specific performance
• Rescission