week 6 - contract law Flashcards
(8 cards)
what case laid out the test for remoteness of damage?
hadley v baxendale (1854)
Mill owner ordered a new shaft as the old one broke + no work could be done, the carrier was unaware the mill did not have a spare + was late delivering the new one.
The owner sued the carrier for loss of anticipated profits on the days it was late.
what is a case example of a breach resulting in loss opportunity?
Joyce v bowman law (2010)
When acting for the buyer of a house, the conveyor negligently failed to include a buyer’s option to purchase adjacent land for £20,000. Buyer claimed a loss of profit that could have been made on the land.
Verdict: buyer was entitled to £37,700 damages from the lost chance to redevelop it.
what is an example case of building contracts being damaged/breached?
Ruxley electronics + construction ltd v forsyth (1995)
Contract to build a swimming pool 7.5ft deep but when built the depth was 6.75ft deep. Estimated cost of restructuring the pool was £20,000.
Verdict: as there was no difference in value between the pool contracted + the pool built, the client was only awarded £2,500 in damages for loss of amenity.
what is an case example where a claimant had a duty to mitigate their losses?
Brace v calder (1895)
Claimant had a fixed term employment contract with the defendant. With 2 years left of contract the defendants partnership dissolved leaving the claimant with no work.
Claimant was offered a new contract with a new employer but refused, instead taking court action to claim loss of wages from the defendant.
Verdict: the claimant had a duty to mitigate their loss which they didn’t take by accepting new work, only nominal damages were awarded.
what case is an example of a penalty clause?
Parking eye ltd v beavis (2015)
Mr Beavis argued that the £85 fine received for parking beyond the time limit was a penalty clause due to its excessiveness.
Decision: supreme court ruled in favour of the car park owners, reasoning being the amount was considered not to be extravagant or unconscionable.
what case is an example of a no a sale by description?
Harlingen + leinster enterprises ltd v christopher hull fine art ltd (1991)
Seller offered a painting, claimed to be by a well known painter but he made clear he was not an expert + buyer should examine it. Buyer inspected it + brought it, it turned out to be a forgery.
Verdict: was not a sale by description as the buyer has not relied on the description.
what case is an example where the goods are of satisfactory quality is not applicable?
Grant v australian knitting mills
Grant brought an item of clothing containing excess of sulphite, he developed a rash + spent months in hospital.
Defendant said that Grant would not have developed this if he had washed them before.
Verdict: the clothes were not of satisfactory quality, it is not normal practice to do this.
