The Concentrate Questions and Answers series offers the best preparation for tackling exam questions. Each book includes typical questions, answer plans and suggested answers, author commentary and other features. The common law places great emphasis on damages as the primary remedy for breach of contract, reinforced by the fact that although a victim of a breach may seek specific performance or an injunction, such orders are equitable in nature and therefore discretionary. In claiming damages, the victim of a breach will need to establish that: the claimed method for assessing damages is appropriate (measure); the damages are not too remote (remoteness); if relevant, compensation for inconvenience and/or disappointment caused by the breach is recoverable (non-pecuniary losses); the losses could not have been reasonably mitigated (mitigation); and the recoverable losses have been properly quantified (quantification). Separately, the validity of any agreed damages clause will need to be determined.
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This chapter focusses on compensatory damages for breach of contract. The innocent party will often seek to recover damages to compensate them for their ‘expectation loss’. Essentially, such loss corresponds to the profits the claimant hoped to make from the contract. Damages based upon ‘expectation loss’ protect the innocent party’s ‘expectation interest’ in having the contract performed. Damages are generally assessed at the date of breach. However, the court can take into account events that occur after the date of breach when assessing damages. Damages are not generally recoverable for disappointment or injured feelings resulting from the breach. But, if an object of a contract is to provide pleasure, or the distress is a result of physical inconvenience caused by the breach of contract, then damages for non-economic loss may be recoverable. Sometimes “negotiating damages” can be awarded to compensate the innocent party.
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The Concentrate Questions and Answers series offers the best preparation for tackling exam questions. Each book includes typical questions, answer plans and suggested answers, author commentary, and other features. The common law places great emphasis on damages as the primary remedy for breach of contract, reinforced by the fact that although a victim of a breach may seek specific performance or an injunction, such orders are equitable in nature and therefore discretionary. In claiming damages, the victim of a breach will need to establish that: the claimed method for assessing damages is appropriate (measure); the damages are not too remote (remoteness); if relevant, compensation for inconvenience and/or disappointment caused by the breach is recoverable (non-pecuniary losses); the losses could not have been reasonably mitigated (mitigation); and the recoverable losses have been properly quantified (quantification). Separately, the validity of any agreed damages clause will need to be determined.
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This chapter examines the various remedies for breach of contract. The principal remedy is an award of damages, the main aim of which is to put the claimant in the position in which he would have been had the breach not occurred. The various types of damages are discussed, notably the distinction between expectation loss and reliance loss, and the ability to claim for financial and non-pecuniary losses. The chapter also discusses restitutionary remedies in cases where the defendant has been enriched due to his breach of contract. Finally, the chapter looks at remedies designed to ensure that persons adhere to contracts, such as specific performance and injunctions.
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This chapter deals with the primary remedy for breach of contract: damages. It looks at the basic test, which allows for the recovery of expectation loss, and also considers recovery of reliance loss and a restitutionary sum. The assessment for, and availability of, negotiating damages as recently affirmed by the Supreme Court in One Step (Support) LTD v Morris-Garner and Another (2019) is explored. The further limitations on recovery such as remoteness and the ‘duty’ to mitigate are considered, as is the distinction between liquidated damages and penalty clauses. The problem of recovering for non-financial losses—mental distress and the consumer surplus—is also addressed. Finally, the chapter looks at how the rules on penalties have been relaxed with the landmark judgments in Cavendish and ParkingEye (2015).
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Robert Merkin, Séverine Saintier, and Jill Poole
Course-focused and comprehensive, Poole’s Textbook on Contract Law provides an accessible overview of the key areas on the law curriculum. Where there is breach of contract, the aggrieved party is entitled to the remedy of damages as of right. Contractual damages aim to compensate the claimant for losses suffered rather than punish the defendant. To achieve compensation the claimant is put in the position he would have been in if the contract had been properly performed and the breach had not occurred. In other words, the aim is to protect the expectation of performance (known as the ‘expectation interest’ or the ‘performance interest’). This may involve any difference in value between the promised and the actual performance, loss of profits, or reimbursing the claimant for any expenditure that had been wasted due to the breach. A claimant may not be fully compensated for his losses as a result of the remoteness rule, which limits recovery of losses and/or the duty to mitigate (minimize) loss. Damages may also be apportioned, in some circumstances, for the claimant’s own contributory negligence in contributing to his own loss. In general, non-pecuniary losses are not recoverable in a claim for breach of contract, but there are cases where a modest sum may be awarded for the disappointment resulting from not receiving the promised performance. The parties may include an agreed damages clause in their contract but in the event of breach only a liquidated damages clause will be enforceable; a penalty clause will not be enforceable beyond the claimant’s actual loss.
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This chapter deals with the primary remedy for breach of contract: damages. It looks at the basic test, which allows for the recovery of expectation loss, and also considers recovery of reliance loss and a restitutionary sum. The further limitations on recovery such as remoteness and the ‘duty’ to mitigate are considered, as is the distinction between liquidated damages and penalty clauses. The problem of recovering for non-financial losses—mental distress and the consumer surplus—is also addressed. Finally, the chapter looks at how the rules on penalties have been relaxed with the landmark judgments in Cavendish and ParkingEye (2015).
Chapter
Robert Merkin KC, Séverine Saintier, and Jill Poole
Course-focused and comprehensive, Poole’s Textbook on Contract Law provides an accessible overview of the key areas of the law curriculum. Where there is breach of contract, the aggrieved party is entitled to the remedy of damages as of right. Contractual damages aim to compensate the claimant for losses suffered, rather than punish the defendant. To achieve compensation the claimant is put in the position he would have been in if the contract had been properly performed and the breach had not occurred. In other words, the aim is to protect the expectation of performance (known as the ‘expectation interest’ or the ‘performance interest’). This may involve any difference in value between the promised and the actual performance, loss of profits, or reimbursing the claimant for any expenditure that had been wasted due to the breach. A claimant may not be fully compensated for his losses as a result of the remoteness rule, which limits recovery of losses and/or the duty to mitigate (minimize) loss. Damages may also be apportioned, in some circumstances, for the claimant’s own contributory negligence in contributing to his own loss. In general, non-pecuniary losses are not recoverable in a claim for breach of contract, but there are cases where a modest sum may be awarded for the disappointment resulting from not receiving the promised performance. The parties may include an agreed damages clause in their contract but in the event of breach only a liquidated damages clause will be enforceable; a penalty clause will not be enforceable beyond the claimant’s actual loss.
Chapter
Robert Merkin KC, Séverine Saintier, and Jill Poole
Course-focused and comprehensive, Poole’s Textbook on Contract Law provides an accessible overview of the key areas of the law curriculum. Where there is breach of contract, the aggrieved party is entitled to the remedy of damages as of right. Contractual damages aim to compensate the claimant for losses suffered rather than punish the defendant. To achieve compensation the claimant is put in the position he would have been in if the contract had been properly performed and the breach had not occurred. In other words, the aim is to protect the expectation of performance (known as the ‘expectation interest’ or the ‘performance interest’). This may involve any difference in value between the promised and the actual performance, loss of profits, or reimbursing the claimant for any expenditure that had been wasted due to the breach. A claimant may not be fully compensated for his losses as a result of the remoteness rule, which limits recovery of losses and/or the duty to mitigate (minimize) loss. Damages may also be apportioned, in some circumstances, for the claimant’s own contributory negligence in contributing to his own loss. In general, non-pecuniary losses are not recoverable in a claim for breach of contract, but there are cases where a modest sum may be awarded for the disappointment resulting from not receiving the promised performance. The parties may include an agreed damages clause in their contract but in the event of breach only a liquidated damages clause will be enforceable; a penalty clause will not be enforceable beyond the claimant’s actual loss.
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Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. This chapter examines the principles by which contractual damages are assessed. The discussions cover the aim of contractual damages, the difference between damages in contract and in tort; the relationship between the expectation interest and the reliance interest; cost of cure and difference in value; remoteness of damage; foreseeability and assumption of risk; non-pecuniary losses; mitigation; contributory negligence; and penalties, liquidated damages and forfeiture.
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Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. This chapter examines the principles by which contractual damages are assessed. The discussions cover the aim of contractual damages, the difference between damages in contract and in tort; the relationship between the expectation interest and the reliance interest; cost of cure and difference in value; remoteness of damage; foreseeability and assumption of risk; non-pecuniary losses; mitigation; contributory negligence; and penalties, liquidated damages and forfeiture.
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Robert Merkin and Séverine Saintier
Poole’s Casebook on Contract Law provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. Contractual damages aim to compensate the injured party for the loss suffered due to breach of contract. Damages for breach are compensatory and not punitive so that it is possible to recover only for the actual loss suffered by the injured party. This chapter considers the different measures to achieve compensation for loss suffered as a result of the breach and the limitations on the ability to be fully compensated in a breach of contract claim. It also discusses agreed damages provisions and their enforceability.
Chapter
Robert Merkin KC, Séverine Saintier, and Jill Poole
Poole’s Casebook on Contract Law provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. Contractual damages aim to compensate the injured party for the loss suffered due to breach of contract. Damages for breach are compensatory and not punitive so that it is possible to recover only for the actual loss suffered by the injured party. This chapter considers the different measures to achieve compensation for loss suffered as a result of the breach and the limitations on the ability to be fully compensated in a breach of contract claim. It also discusses agreed damages provisions and their enforceability.
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Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter focuses on compensatory damages, the principal remedy for breach of contract, and explores the actionable types of loss. It deals with the various measures of damages, how they are quantified, and discusses the circumstances in which the claimant can recover for non-financial loss. It explores principles of causation and the remoteness of damage test for breach of contract, the requirement of mitigation, and the defence of contributory negligence.
Chapter
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter focuses on compensatory damages, the principal remedy for breach of contract, and explores the actionable types of loss. It deals with the various measures of damages, how they are quantified, and discusses the circumstances in which the claimant can recover for non-financial loss. It explores principles of causation and the remoteness of damage test for breach of contract, the requirement of mitigation and the defence of contributory negligence.
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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.
