damages

• Compensatory Damages

  Damages awarded to place the claimant back in the position they would have been in had the breach not occurred
• Damages are awarded for expectation loss or reliance loss
• Expectation loss

  Loss of a bargian
• Compensation for expectation loss

  Places the claimant back into the position they should be in had the contract been performed
• Expectation loss

  • Bence Graphics: vinyl film lasted 2 years instead of 5; damages to cover actual loss of having to fully replace the vinyl
• Compensation for expectation loss

  Covers the difference between the contract price and the market price
• Expectation loss

  • Charter v Sullivan: when the defendant had ordered and rejected the car, there was a large market for this type of car making the claimant's loss small so damages were nominal
• Reliance loss

  Wasted expenditure incurred by the claimant in reliance on the contract being performed
• Reliance loss

  • Anglia TV v Reed: when the actor pulled out of the film and it never went ahead, Anglia TV could claim for wasted expenditure in preparing for the film
• Nominal Damages

  Awarded when a case was brought for the court to make a decision but no loss has been suffered
• Nominal Damages

  • Staniforth v Royal: the claimant suffered no loss but needed the court to confirm the contract had ended
• Substantial Damages

  Damages based on what may have been negotiated if the parties agreed to the contract (even though they would not have)
• Substantial Damages

  • Wrotham Park v Parkside Homes: when the defendant built on land that prevented this, although the claimant would not have agreed to a contract, substantial damages covered the amount they would have negotiated
• Causation

  The breach of contract must have caused the loss the claimant is claiming for
• Remoteness of Damages

  Determining which losses can be claimed, based on what loss is a natural consequence of the breach and what knowledge both parties had of the potential losses
• Remoteness of Damages

  • Hadley v Baxendale: when the claimant sued as prompt delivery was important to him, it failed as the defendant did not know the importance of this
• What can compensation be claimed for?

  loss of profit that would have resulted the goods been supplied (Victoria Laundry)
• Compensation covers loss C suffers when he recieves goods or services which do not meet the recquirements of what he expected.