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Contract - Remedies
Remedies - damages, heads of damages, equitable remedies
Question | Answer |
---|---|
What are the remedies available for contracts? | Damages, recission, restitution, estoppel, injunction, specific performance + statutory remedies (e.g. right to reject) |
what is recission? | puts parties back into pre contractual position |
when is recission suitable as a remedy? | misrepresentation (negligent & fraudulent) |
what is restitution? | restores parties to position before wrongdoing |
when is restitution suitable as a remedy? | duress |
What is estoppel (promissory)? | partiers stopped from going back on promise |
when are injunctions awarded? | to prevent a breach |
AB v CD | example of an injunction being awarded |
Page One Records v Britton | inequitable for the court to award an injunction or specific performance as a remedy to personal services (troggs) |
Irani v Southampton AHA | Damages are the normal remedy for wrongful dismissal, but an injunction was awarded here |
What is specific performance? | a party is forced to complete/perform the contract |
When is specific performance suitable as a remedy? | where something is unique - often land, can be property. Not for personal services. Only available if damages are not adaquate |
Beswick v Beswick | Widow not paid, and the legal advisors cannot sue for another persons losses. Damages not available, so specific performance used |
Patel v Ali | unfair to award specific performance due to undue hardship (illness) - specific performance is given at courts discretion. |
What must you prove, for damages to be awarded? | causation (loss must be a consequence of the breach), can't be too remote, msut show mitigation of loss |
County Ltd v Girozentrale Securities | D's breach did cause some losses - other causes didn't break the chain of causation |
Hadley v Baxendale | Too remote (not in contemplation that mill needed the crankshaft) |
Victoria Laundry v newman | 2 'limbs' - it is expected that you are aware of losses that are common knowledge but not abnormal losses (boiler laundrette) |
The Heron II | Buying and selling sugar case - loss not too remote as the loss of profit was not unlikely to result (price fallen) |
Parsons v Uttley Ingham | Pignut Hopper Case - breach caused pigs to be poisoned and died - extent of damage needn't be foreseeable so not too remote |
The Alaskan Trader | spent money on boat despite aniticpatory breach - so couldn't claim as they didn't mitigate losses |
Thai Airways | Super mitigation - didn't make a loss |
Pilkington v wood | Shows limits of what is reasonable to mitigate your losses (claiming for compensation not reasonable) |
What are the different heads of damage? | Loss of barigain, reliance loss, liquidated damages |
What is loss of bargain? | aka expectation loss - puts C in position they would be in if contract had been performed |
Ruxley Electronics v Forsyth | loss of bargain not awarded as rebuilding the pool would be unreasonable - nominal damages awarded |
What is reliance loss? | places C in position they would have been in if contract hadn't been made |
Anglia TV v Reed | spent money preparing for film, then actor dropped out - reliance loss |
What are liquidated damages? | amount if fixed by a term in the contract |
Parkingeye v Beavis | penalty payment for the parking spot - court said that these clauses are binding unless 'exorbitant or unconscionable' |