Remedies

• What are the 2 main sources of remedy ?

  Legal and equitable
• What are legal remedies ?

  • Damages
  • Consumer Rights Act (rejecting, refunding, replacing goods)
  • UCTA
• What are equitable remedies ?

  • Rescission
  • Restitution
  • Specific performance
  • Injunctions
• What are damages ?

  Money compensation for losses
• What are compensatory damages ?

  • Where the court tries to compensate for actual loss
  • This is the main form
• What is the difficulty with compensatory damages ?

  • Knowing where the compensation for loss stops
  • Known as causation and remoteness of damage
• What is the principle of ‘remoteness of damage’ ?

  • If the ‘damage’ is too remote
  • It couldn’t have been contemplated or it is too removed from the breach
  • Then damages won’t be awarded
  • Hadley v Baxendale
• What are the tests for remoteness that come from Hadley v Baxendale ?

  • Objective test - Causal link
  • Subjective test - Knowledge of the parties available
• What is the objective test ?

  • What loss is the natural or direct consequence of the breach ?
  • Causal link
  • Main reason
• What is the subjective test ?

  • What specific knowledge did the parties have with regard to potential losses when the contract was made?
  • If they had knowledge, then damages may be awarded
  • If they had no knowledge then they won’t
• If either is proved, then the defendant will be liable
• What is implied knowledge based on ?

  • Implied knowledge based on the reasonable man
  • This can be included in the idea of 'knowledge'
• When is a person liable for damage resulting from breach ?

  • At the time of making the contract a reasonable person
  • In his shoes
  • Would have had damage of that kind in mind as not unlikely to result from a breach
• How are compensatory damages assessed ? (How much should C get?)

  • Bases of assessment
  • Loss of bargain
  • Reliance loss
  • Restitution
• What is loss of a bargain ?

  • Difference in value been quality of goods & what they should have been
  • Failure to deliver
  • Alternative supply was found = the difference would be worked out
  • Loss of profit
  • Loss of chance – rare
• What is reliance loss ?

  Allows a client to recover expenses in advance of a contract that has been breached
• What is restitution ?

  Money or benefits is paid back
• What is duty to mitigate loss ?

  • Injured party has to do what they can to reduce their loss
  • If they don’t, their award for damages will be reduced
  • Only have to do what is reasonable
  • Don’t have to go to extraordinary lengths
  • Brace v Calder
• What is quantum meruit ?

  When you pay for the work that has been done
• What are equitable remedies based on ?

  • Fairness
  • Where damages/rejection would not do this
• When are equitable remedies available ?

  • Always at the discretion of the court
  • There is no ‘automatic right’ to them
  • Only used when damages is not an adequate or fair remedy
• What are the equitable remedies ?

  • Rescission
  • Restitution
  • Specific performance
  • Injunctions