Remedies

Question 1

What is expectation loss? And what case does it relate to?

Answer 1

Puts the claimant in the position they expected to be in if the contract had been performed.

Case: Robinson v Harman (1848) – C promised a lease which was not provided. Court awarded the value of the lease.

Question 2

Reliance loss and the case

Answer 2

Puts the claimant back to the position they were in before the contract. Used when expectation loss is too speculative.

Case: Anglia TV v Reed (1972) – TV company recovered wasted costs after actor pulled out.

Question 3

Mitigation of loss

Answer 3

Claimant must take reasonable steps to reduce loss after breach.

Case: Payzu v Saunders (1919) – Buyer refused alternative cash deal. Court held buyer failed to mitigate.

Question 4

Gains from mitigation

Answer 4

If C gains a benefit from mitigating, it must be deducted.

Case: British Westinghouse v Underground Electric (1912) – Replaced turbines were better than contracted ones.

Question 5

Assumption of responsibility

Answer 5

Even if loss is foreseeable, no damages if D didn’t assume responsibility.

Case: The Achilleas (2008) – Delay caused downstream loss but court held it was not within D’s responsibility.

Question 6

Specific performance

Answer 6

Equitable remedy forcing performance. Only granted if damages are inadequate.

Case: Co-op v Argyll (1998) – Court refused to enforce ongoing business operation.

Question 7

Non-pecuniary loss

Answer 7

Damages for mental distress allowed only in contracts for enjoyment or peace of mind.

Case: Jarvis v Swan Tours (1973) – Holiday misrepresented. Damages awarded for disappointment.

Question 8

Statutes that are relevant

Answer 8

Sale of Goods Act 1979 s.51 – damages for non-delivery.

Law Reform (Frustrated Contracts) Act 1943 – restitution after frustration.

Consumer Rights Act 2015 s.64 – exempts ‘price’ from fairness test if transparent.