Remedies

• Learning Outcomes


  • Understand the ethos of remedies in contract law
  • Understand that there are 4 ways to end a contract (we look at 3)
  • Understand how a contract can be breached
  • Understand the remedies for pecuniary and non pecuniary loss
  • Understand the different types of unliquidated damages
  • Understand remoteness
  • Understand mitigation
• The Aim of Remedies in Contract Law


  To compensate for loss not punish for breach
• Robinson v Harman (1848) 1 Ex 850: 'To compensate for loss not punish for breach'
• Ways in which a contract can end


  • Breach
  • Anticipatory breach
  • Agreement
  • Frustration (later in course)
• Breach of contract


  A breach occurs when one party performs either defectively, differently from what was agreed, does not perform at all (actual breach), or gives prior notice that it will not be performing as agreed (anticipatory breach)
• Actual Breach – Case Law Examples


  • Platform Funding Ltd v Bank of Scotland
  • Pilbrow v Pearless de Rougemont & Co
  • Abramova v Oxford Institute of Legal Practice
• Anticipatory Breach – Case Law Examples


  • Frost v Knight
  • Hochester v De la Tour
• Remedies for Breach


  • Damages
  • Repudiation
• Remedies for breach-Repudiation


  The remedy for a breach which entitles the party to cancel the contract
• Woodar Investment Development v Wimpey Construction Ltd.: 'Repudiation is a drastic conclusion which should only be held to arise in clear cases of a refusal, in a matter going to the root of the contract, to perform contractual obligations.'
• Remedies for Breach-Damages


  An award of money which is intended to compensate the innocent party for any financial losses it occurs as a result of the breach
• Pecuniary Loss


  Damages which aim to compensate the innocent party for financial losses incurred as a result of the contract not being performed by the party in breach
• Non-pecuniary Loss


  Losses which are non-financial in nature and are mostly relied on to compensate an innocent party for any significant personal distress such as hurt feelings, loss of amenity, psychiatric harm and humiliation which might have resulted from the breach of contract
• Non-pecuniary loss damages are not awarded for commercial contracts
• Damages – Non-pecuniary loss


  • Addis v Gramophone Ltd
  • Jarvis v Swans Tours Ltd
• Unliquidated damages


  No term dealing with what the defendant will pay, so the court will need to work out what the defendant will pay
• Unliquidated damages-Reliance Loss


  Loss arising prior to breach of contract
• Unliquidated damages-Reliance Loss


  • Anglia TV v Reed [1972] 1 QB 60
• Unliquidated damages-Expectation loss


  Loss arising after the breach of contract
• Unliquidated damages-Expectation loss


  • Ruxley v Forsyth
• Unliquidated damages-Expectation loss


  • a)Cost of cure=x
  • b)Difference in value=x
  • Loss of amenity/pleasure=YES!!!!
• Damages – Remoteness


  Losses which are unforeseeable from the breach are too remote to be compensated
• Hadley v Baxendale: 'Damages will be awarded for; Loss which would arise naturally from the breach of contract, and; Loss which may reasonably be supposed to have been in the contemplation of the parties when they made the contract, as the probable result of its breach.'
• Damages – Mitigation


  To be successful in a claim for damages, claimant must show that he/she took reasonable steps to mitigate (reduce) the losses which result from the breach of trust
• Authorities


  • British Westinghouse Electric Co Ltd v Underground Electric Rys Co Ltd, Brace v Calder