Remedies (Damages and Injunctions) and Defences Flashcards
(16 cards)
What is the basic aim of expectation damages in contract law?
A. To place the innocent party in the position they would have been in had the contract been performed
B. To punish the breaching party
C. To restore the plaintiff to their pre-contract position
D. To provide a windfall to the innocent party
A. To place the innocent party in the position they would have been in had the contract been performed.
Explanation: Expectation (compensatory) damages protect the claimant’s expectation interest, reflecting the benefit of full performance
When are reliance damages awarded instead of expectation damages?
A. If the claimant’s loss was caused by their own fault
B. If expectation loss is too speculative to quantify
C. If the contract is rescinded for misrepresentation
D. If the contract concerns unique subject-matter
B. If expectation loss is too speculative to quantify.
Explanation: Reliance damages reimburse expenses incurred in reliance on performance when future benefits cannot be reliably assessed
Under Hadley v Baxendale, which loss is NOT recoverable?
A. Loss arising naturally from the breach
B. Loss within the parties’ contemplation at formation
C. Pure economic loss totally unrelated to the breach
D. Consequential loss of profits communicated to the breaching party
C. Pure economic loss totally unrelated to the breach.
Explanation: Recoverable losses must arise naturally or have been in the parties’ contemplation; purely unrelated economic losses are excluded
What is the duty to mitigate?
A. Obligation on the breaching party to minimize claimant’s losses
B. Obligation on the innocent party to take reasonable steps to reduce their loss after breach
C. Obligation to seek specific performance before claiming damages
D. Obligation to accept any substitute performance offered
D. Obligation on the innocent party to take reasonable steps to reduce their loss after breach.
Explanation: Claimants cannot recover losses they might have avoided by taking reasonable mitigation measures
Which injunction prevents a party from doing something?
A. Mandatory injunction
B. Prohibitory injunction
C. Quia timet injunction
D. Freezing injunction
B. Prohibitory injunction.
Explanation: Prohibitory injunctions restrain wrongful acts; mandatory injunctions require a positive act
Before granting an injunction, a court will consider:
A. Whether damages are adequate, balance of convenience, and whether the order would be oppressive
B. Only the merits of the case
C. The defendant’s ability to pay damages
D. The public’s opinion on the matter
A. Whether damages are adequate, balance of convenience, and whether the order would be oppressive.
Explanation: Courts weigh adequacy of damages, comparative hardship, and fairness before granting equitable relief
A bespoke sculpture commission is breached by the artist. The patron’s best remedy is:
A. Expectation damages for the cost of a replacement sculpture
B. Restitutionary damages for the deposit paid
C. Quantum meruit for work done to date
D. No remedy if the artist is insolvent
A. Expectation damages for the cost of a replacement sculpture.
Explanation: For unique works, expectation damages cover the cost to obtain a substitute performance
After a supplier’s breach, a business buys substitute materials at higher cost. Recoverable excess cost equals:
A. The full extra cost, regardless of reasonableness
B. Zero—no mitigation allowed
C. Only the reasonable additional cost incurred by mitigation
D. Expectation damages plus punitive supplement
C. Only the reasonable additional cost incurred by mitigation.
Explanation: Mitigation limits recovery to costs a reasonable person would incur to reduce loss
A landowner seeks an injunction against noisy machinery but the court finds damages adequate. The likely outcome is:
A. Mandatory injunction to remove the machinery
B. Prohibitory injunction to stop operation
C. Damages in lieu of an injunction
D. No remedy at all
C. Damages in lieu of an injunction.
Explanation: If damages adequately compensate and injunction would be oppressive, courts award damages instead
A debtor wrongfully sells fungible goods. The secured party’s injunction request will be:
A. Granted to restore the exact goods
B. Denied, with damages awarded since goods are fungible
C. Converted to a freezing order
D. Barred by impossibility
B. Denied, with damages awarded since goods are fungible.
Explanation: When subject-matter is fungible and damages are adequate, specific relief is refused
After breach, a party learns the breacher is insolvent and seeks specific performance. The court:
A. Denies all relief due to insolvency
B. Grants specific performance if the contract involves unique goods or services
C. Awards punitive damages instead
D. Orders rescission and restitution only
B. Grants specific performance if the contract involves unique goods or services.
Explanation: Specific performance is appropriate where damages would not suffice due to insolvency
A neighbouring fence unlawfully encroaches. The landowner’s proprietary remedy is:
A. Abatement without court order
B. Damages only
C. Injunction requiring removal of the fence
D. Public nuisance claim
C. Injunction requiring removal of the fence.
Explanation: Encroachments are remedied by injunctive relief to restore proprietary rights
Which defence completely bars a negligence or contract claim when the claimant knowingly assumed the risk?
A. Volenti non fit injuria
B. Contributory negligence
C. Frustration
D. Illegality
A. Volenti non fit injuria.
Explanation: A claimant who consents to a known risk cannot later sue for resulting harm
Which defence reduces damages but allows partial recovery?
A. Contributory negligence
B. Ex turpi causa
C. Statutory authority
D. Act of God
A. Contributory negligence.
Explanation: The court apportions fault and reduces the claimant’s damages “just and equitable” under s.1 LRCNA 1945
Which statutory defence under the Consumer Protection Act 1987 excuses a producer if the defect was undiscoverable at time of supply?
A. Development risks defence
B. Volenti
C. Misuse of product
D. Private nuisance immunity
A. Development risks defence.
Explanation: s.4(1)(e) CPA 1987 protects producers where a defect was not discoverable by the state of scientific and technical knowledge at supply
Which defence under Rylands v Fletcher bars strict liability if the escape was caused by an unforeseeable natural event?
A. Act of God
B. Statutory authority
C. Contributory negligence
D. Consent
A. Act of God.
Explanation: Truly unforeseeable, irresistible natural events (e.g., unprecedented floods) negate strict liability
