This Chapter discusses damages and other remedies for breach of contract. It covers the compensatory nature of damages, basis of assessment of damages, causation, remoteness, mitigation, assessment of damages in contracts for the sale of goods, claimants’ contributory negligence, the tax element in damages, interest, and agreed damages clauses (contrasting penalty clauses).
Chapter
17. Damages
Jack Beatson, Andrew Burrows, and John Cartwright
Chapter
8. Breach and Termination of the Contract
This chapter addresses the breach and termination of the contract. Since the terms represent obligations of the parties, where such an obligation is not followed, we say there has been a breach of the contract. The chapter examines the law relating to breach of contract and how breach can end a contract. When a term is breached, it does not end the contract automatically. Instead, the breach will entitle the innocent party to compensation for losses caused by the breach. In addition, the breach might allow the innocent party to choose to end the contract. Such an option is often determined by the type of term breached or the seriousness of the breach. This means that a typical dispute following an obvious breach will be about whether the innocent party can end the contract. Before one can explore when a breach can result in the contract ending, however, one needs to briefly look at how a party can breach an obligation. That is based on whether the obligation is due to be performed; the type of obligation; and the standard of performance that it requires.
Chapter
13. Damages
Where the parties have not agreed on the consequences of breach or any agreed remedies are unenforceable, the default is that the aggrieved party is always entitled to expectation damages for breach of contract. This chapter discusses: (1) the types of loss recognised by contract law and so compensable for breach of contract; (2) how loss is calculated; (3) when contract law allows departures from the expectation measure and allows awards claims based on reliance, restitution, account of profits, or loss of opportunity to bargain (negotiating damages); and (4) when consumers have the right to a price reduction.
Chapter
7. Remedies for breach of contract
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter focuses on damages, the aim of which is generally to protect the claimant’s contractual expectation and put the claimant into the position they would have been in had the contract been properly performed. The lost expectation may be measured in terms of the difference between what the claimant expected to get and what was actually received. There are limitations on the claimant’s ability to be fully compensated for losses as a result of breach, i.e. remoteness, mitigation, contributory negligence, and the ability to recover for non-pecuniary losses in contract. This chapter also examines agreed damages clauses and the operation of the penalty rule.
Chapter
7. Remedies for breach of contract
James Devenney and Adam Shaw-Mellors
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter focuses on damages, the aim of which is generally to protect the claimant’s contractual expectation and put the claimant into the position they would have been in had the contract been properly performed. The lost expectation may be measured in terms of the difference between what the claimant expected to get and what was actually received. There are limitations on the claimant’s ability to be fully compensated for losses as a result of breach, i.e. remoteness, mitigation, contributory negligence, and the ability to recover for non-pecuniary losses in contract. This chapter also examines agreed damages clauses and the operation of the penalty rule.
