Miscellaneous Quiz / Contract 3.1 - Remedies for Breach of Contract

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Can you name the Contract 3.1 - Remedies for Breach of Contract?

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Case DescriptionCase Name
If damages are only going to be minimal, C should be wary of bringing a claim - may have to pay all costs of proceedings
Normal aim of contractual damages: as far as money can do it to place the party sustaining loss in the same situation w.r.t. damages as if the contract had been performed
Expectation Loss: where cost of cure is disprop. to loss suffered on an alternative measure, REASONABLENESS plays big role in determining basis of recovery
Expectation Loss: damages may be awarded on the basis of 'loss of amenity' (rather than diff. in value or cost of cure) where appropriate
Reliance Loss: sometimes C may ask for damages to cover expenses incurred in reliance on the contract
Types of Loss: lost opportunity - damages CAN be awarded
Types of Loss: mental distress and disappointment - general rule - damages CANNOT be awarded
Types of Loss: mental distress and disappointment - exception - where contract is to provide pleasure, entertainment, enjoyment or peace of mind
Types of Loss: mental distress and disappointment - exception - providing pleasure needn't be the SOLE object, just needs to be an IMPORTANT part
Remoteness Rule: two limb test
Case DescriptionCase Name
Remoteness Rule: re D's knowledge of C's business practices - no gen. rule that parties are presumed to know all other party's techniques, but simpler the activity, easier to imply
Remoteness Rule: D's knowledge at the time contract formed is the crucial factor
Remoteness Rule: clarified 'reasonable contemplation' - 'of a kind which the D... ought to have realised was not unlikely to result from the breach'
Remoteness Rule: if the D can contemplate the TYPE of loss as a serious poss., then ALL loss of that type is recoverable, even if extent couldn't have been contemplated
Mitigation - C CANNOT recover damages for loss which he could've avoided by taking reasonable steps
Specified Damage or Penalty Clause? - Q. of construction, and court should look at circs. at the time of the contract, NOT at the time of the breach
Specified Damage or Penalty Clause? - looking at subsequent events COULD be valuable evidence as to what could reasonably be expected to be the loss at time contract was made
Specified Damage or Penalty Clause? - set out guidelines on how to decide
Remedy of Injunction - usually enforcing a term of a contract whereby a party agrees not to work for s.o. else or in a particular capacity for a period of time
Remedy of Restitution - situation #3 - may be brought for work done/goods supplied where a contract was never formed

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