Remedies

Question 1

What can damages be claimed for?

Answer 1

Damages can be claimed for financial losses that result from non-performance and this can include loss of profits and any physical damage or harm

Question 2

Pilkington v Wood

Answer 2

The parties should take reasonable steps to mitigate losses

Question 3

British Westinghouse Electric v Underground Electric

Answer 3

If mitigation removes or could have removed any actual loss suffered, there can be no claim for damages

Question 4

Addis v Gramophone

Answer 4

Damages can’t usually be claimed for mental distress in a commercial contract

Question 5

Farley v Skinner

Answer 5

Exception to Addis v Gramaphone where someone can claim for mental distress if the main point of the contract is pleasure

Question 6

Hadley v Baxendale

Answer 6

Losses suffered must have been those which would arise naturally or would have been within the contemplation of the parties

Question 7

Victoria Laundry v Newman

Answer 7

Unusual losses must have been within the contemplation of the parties

Question 8

The Heron II

Answer 8

the parties are expected to contemplate the normal losses that would have been suffered by a business

Question 9

When will Specific performance be awarded?

Answer 9

Where damages are inadequate, e.g. for unique property such as land
Where damages would only be nominal, Beswick v Beswick

Question 10

When will Specific performance not be awarded

Answer 10

In contracts for personal services or employment, s.236 of the Trade union and Labour Relations Act 1992.
In contracts which require monitoring of an ongoing obligation, Ryan v Mutual Tontine
Where it would cause hardship, Patel v Ali
Where the contract was obtained unfairly or through taking advantage of the other party’s mistake, Walters v Morgan

Question 11

What are the different kinds of injunctions

Answer 11

Prohibitory injunctions prevent a future breach of contract, Lauritzencool v Lady Navigation
Mandatory injunctions force someone to do something