Monday, March 14, 2011

Remedies in Contract

Remedies
In this part we try and understand the various remedies that the aggrieved party to a contract can seek from the courts

Remedies in Contract
Damages
Injunction
Specific Performance

Damages
Monetary compensation
Compensatory Principle
Restitio in Integrum – put parties in the position had the contract not been breached
Johnson v Agnew (1979)
Requires proof of causation
Remoteness
Mitigation
Assessment

Causation
Question of fact
Whether the breach caused the damage

Remoteness
Test in Hadley v Baxendale (1854)
Normal Loss (usual course)
Abnormal loss (contemplated)

Mitigation
Duty to minimise the loss
Duty is to take reasonable steps
British Westinghouse v London Underground Electric Railway(1912)

Assessment
Liquidated claims
Unliquidated claims
Loss of enjoyment (Jarvis v Swan Tours)
Penalty clauses

Specific Performance
Equitable remedy
Discretionary
Not given if damages is adequate

Injunction
Equitable remedy
Prevents an action
Interlocutory
Permanent

Conclusion - Remedies
In this part you would have to understand the consequences of the breach – what parties are entitled to upon a breach and how these remedies can be awarded

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