remedies Flashcards
(35 cards)
what does enforcing a contract mean?
it means getting a remedy in contract law, which usually means getting remedies instead of actually enforcing a contract
what are the 2 types of remedies?
-legal remedies
-equitable remedies
what are the 2 types of legal remedies?
-repudiation
-damages
what are the 2 types of damages?
-compensatory
-nominal
what are nominal damages?
they happen when nothing has been lost due to the breach, so the damages are just to recognise that there has been a breach, and it is usually a very small amount
what is the case that defines compensatory damages?
Robinson v Harman
what are compensatory damages?
these are used to put the claimant in the same financial position they would have been had the contract been properly performed
what case shows the 2 types of losses in remoteness?
hadley v baxendale
what does hadley v baxendale say the 2 types of losses are?
-normal losses
-special losses
what are normal losses?
not too remote if they are reasonably foreseeable
what are special losses?
not too remote if the defendant knew of the particular circumstances and the loss they could cause
what is the case that shows examples of both normal and special losses?
Victoria Laundry v Newman
what does victoria laundry v newman say about normal losses?
that the money from the existing contracts were normal losses because they were the profits they would’ve originally made - it was reasonably foreseeable
what does victoria laundry v newman say about special losses?
that the government was a special loss as it was not part of their everyday business - the defendant did not actually know of the government contract
what is quantum of losses?
it means working out the quantity owed and how much must be paid
what are the 3 main methods to calculate quantum losses?
-calculating through expectation losses
-calculating through reliance loss
-calculating through liquidated damages
what are expectation losses?
this looks at the expected value compared to the actual value gained and compensates based on the difference in those values
what are the cases for expectation loss?
-Thompson v Robinson - worked
-Charter v sullivan - did not work
what is reliance loss?
reliance loss is used when it is very hard to figure out what value could be expected if the contract was complete - it looks at what the value has been lost as a result of starting the contract
what are the cases for reliance loss?
-Anglia TV v Reed - did not work
-Farley v Skinner
-Jackson v Horizon River (where the purpose of the contract was for pleasure)
what are liquidated damages?
this is where a term in the contract itself specifies an amount of damages to be paid upon breach - must be distinguished from mere penalties
what case gives the rules about liquidated contracts?
ParkingEye v Beavis
what rules did ParkingEye v Beavis set out about liquidated contracts?
-protects a legitimate interest
-is not an exorbitant or unconscionable amount to protect that interest
what is the duty c must take to mitigate losses?
they must take reasonable steps to minimise their losses