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Cards (21)
Remedies in Contract Law
-
legal remedies
-
equitable remedies
- remedies under a specific
statute
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Actual breach
Where the breach occurs at the time of or during the course of
performance
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Anticipatory Breach
Notified that a
party
to the
contract
will not fulfill their part of the contract prior to the required time of fulfillment.
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Legal remedies
- available against a person in
breach of contract
as of right
- can be
damages
(financial compensation) or remedies against the goods
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Equitable Remedies
- these are discretionary - don't have an automatic right - available when
damages
are inadequate/unfair
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Remedies under the consumer rights act
- right to refund
s20
- right to replacement/repair
s23
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Damages
- put victim in the position would have been in if
contract
had been performed by D
- usually given if there is a
loss
of bargain,
reliance
loss or restitution
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Loss of bargain
- put in same
financial position
-
difference
in value between goods/service and those provided
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Bence
Graphics
v
Fasson
Loss of bargain
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Reliance loss
- if
claimant
relied on contract being performed
- can also recover expenses they paid in advance of the contract breach -
anglia
v
reed
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restitution
repayment in the form of money or service by an
offender
to a
victim
who has suffered some loss from the offense
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Causation
and remoteness of
damage
The law attempts to place a reasonable limit on the defendants responsibilities by releasing them from
liability
where the
damage
is
too
remote
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Hadley
v
Baxendale
test
- what
loss
is a
natural
consequence
of the
breach
(obj)
- was
specific
knowledge
of potential losses in
contemplation
of the parties
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Remoteness
test from
Hadley
v
Baxendale
Damages awarded for loss that:
Arose naturally from the
breach
OR
Was the result of
special circumstances
that both sides reasonably contemplated when entering the contract
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Mitigation of loss
the expectation that a person injured by a
breach
of
contract
will take reasonable steps to reduce any losses that the breach caused
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British
Westinghouse
v
Underground
Electric
Reasonable steps
of mitigation are required
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liquidated damages
An amount predetermined by the parties to a
contract
as the total compensation to an injured party should the other party
breach
the contract.
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ParkingEye v Beavis
- penalties must protect a
legitimate
interest
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Quantum Meruit
as
much
as
deserved;
an action brought for the value of the services rendered the defendant when there was no express contract as to the
purchase
price
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Page
One
Records v
Britton
The court will not enforce a promise in a
contract
if the
injunction
would result in the party remaining idle and detrimentally impacting their career.
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Airport
Industrial
v
Heathrow
Airport
Specific performance
was not ordered as it would force a company into
liquidation
- would be unjust
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