Summary
Summary Damages for Breach of Contract
- Course
- Institution
- Book
Damages for breach of contract.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Formation of Contract detailed notes with relevant case law
-
First Class Contract Law Notes (LLB)
-
Exclusion Clauses
Seller
Follow
topqualitynotes
Reviews received
Content preview
Chapter 21Damages for breach of contract
21.1 Introduction:
Breach gives rise to an action for damages whether the term is broken is a condition, a
warranty or an innominate term.
Does the law of contract really fulfil the expectations engendered by a binding promise?
21.2 Compensation and the different ‘interests’:
The aim of an award of damages is to compensate the claimant for the loss which he has
suffered as a result of the D’s breach of contract.
Aim isn’t to punish the defendant.
Breach of contract as a civil wrong; not a criminal offence.
For what is it that the claimant is entitled to be compensated?
A claimant could claim the protection of his expectation interest.
Expectation interest-> claimant’s expectation has not been fulfilled and that damages should
compensate his disappointed expectations by putting him in as good a position as he would
have occupied had the D performed his promise.
Reliance interest= as a result of the D’s promise to perform his contractual obligations, the
claimant has acted to his detriment in entering into the contract and the award of damages
should compensate him to the extent that he has relied to his detriment upon the promise
of the D.
Reliance-> aim is to put the claimant in as good a position as he was in before the D’s
promise was made.
Restitution interest-> claimant does not wish to be compensated for the loss which he has
suffered; rather, he wishes to deprive the D of a gain which he has made at the claimant’s
expense.
Important factor= the amount of damages.
Where the claimant has made a bad bargain that he will want to claim the reliance measure;
in other cases, the expectation measure will be more advantageous.
21.3 The expectation interest:
General rule is expectation interest.
Robinson v Harman [1848] -> reasserts ^.
Element of ambiguity; the identification of the loss and the measure of that loss.
Do we mean financial loss or do we take into account a broader range of factors?
When one refers to a loss in the context of a breach of contract, one is referring to the
incidence of some personal or patrimonial damage.
White Arrow Express Ltd v Lamey’s Distribution Ltd [1996]
Tabcorp Holdings Ltd v Bowen Instruments Pty Ltd [2009]
In many cases it will suffice to take account of the financial position of the parties because
the contract will have been entered into with a view to making a profit and the protection of
that expectation of profit will adequately protect the interests of the innocent party.
Modern world parties often enter into contracts for reasons other than to make a profit.
Ruxley-> recognition of a consumer surplus.
Specific performance has traditionally been seen as a secondary remedy and the reluctance
to compel specific performance is carried through to the damages remedy.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller topqualitynotes. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.58. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80364 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now