Remedies for Breach of Contract Flashcards

Expectation Interest: the profit that C has lost as a result of D's breach.

Park B in Robinson v Harman 1848: putting the claimant into the position as if the contract was performed

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Calculating Expectation Interest

Two way of calculating: 1. Cost of Cure and 2. Diminution in value

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Restitution Damages

Recovering the profit D has nade as a result of the breach - Rarely allowed - AG v Blake 2001 - "loss of bargaining opportunity"

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Reliance Interest

Being returned to the position C was in before the contract - These claims for wasted expenditure are only allowed in exceptional circumstances

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Causation Test

"But For" Test - Bank of Credit and Commerce v Ali (No 2) 2002

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Unforeseeable act of third party breaks the chain

Weld-Blundell v Stephens 1920

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Unreasonable conduct of Claimant may also break the chain

Quinn v Burch Bros [1966] (contributory negligence has no effect)

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Claimants can recover losses which are: (Hadley v Baxendale 1854)

1, Fairly and reasonably considered to have arises naturally from the breach & 2. Can be reasonably supposed to have been in both parties contemplation at time of contracting(THE LOSS MUST BE FORESEEABLE)

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If C increases loss he cannot claim for the increase

Baxendale [1874]

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If C does not take reasonable steps to minimise losses he will not beable to claim for full damages

Kaines UK [1993]

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But he can claim for losses caused by reasonable conduct

Banco de Portugal [1932]

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Generally D not liable for distress, frustration (Non-Pecuniary Losses + Exception)

Watts v Morrow [1991] - Unless the object of the contract is to avoid such feelings or to provide pleasure

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NPL Exception 1

1. NPL results from personal injury - Wren v Holt 1903

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NPL Exception 2

2,NPL results from physical inconvenience or discomfort - Bailey v Bullock [1950] (living in cramped conditions)

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NPL Exception 3

3. Avoiding the NPL was object of the contract - Farley v Skinner (No 2) [2001]

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NPL Exception 4

4. NPL results from injury to reputation - Bunning v Lyric Theatre [1894]

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Judicial Remedies for Breach

As of Right: Damages, Enforcement of terms & Discretionary: Specific performance, Injunctions

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Specific performance only granted where serves better justice than damages

Tito [1977]

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Courts refuse SP if (4 Reasons)

1. will cause D severe hardship, 2. Contract obtained unfairly 3. Claimant does not have clean hands 4. SP is impossible

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SP is refused for the following 4 contract types

1. which involve personal service 2. require constant supervision 3. are too vague 4. are gratuitous

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Contractually Stipulated Remedies - Liquidated damages contracted for by the parties

Cannot be a penalty clause - test is whether amount stated is a genuine pre-estimate of loss - terms in contract are not conclusive

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Remedies for Breach of Contract Flashcards

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