Remedies
What is a remedy?
A remedy is a solution in a civil case
An award made by court to the innocent party
There are two types of remedies:
1. Common law remedies of damages
2. Equitable remedies
Common law remedies
1. Damages
All common law remedies are available as of right if a contract is
breached
Purpose is to put the victim, so far as it is possible and so far, if the
law allows, in the same position he would be in if the contract had
not been broken
A) Pecuniary losses
▫ Financial losses that result from a breach of contract
B) Non- pecuniary losses
▫ Other losses such as mental stress, disappointment, hurt feelings, or
humiliation
Limitations on the awarding of damages
Causation
A person will only be liable for losses caused by their breach of
contract
Quinn v Burch Bros (Builders) Ltd (1966)
Court held that an exclusion clause cannot protect a party where they
have provided unsafe equipment and the risk was obvious, so the
employer was liable when the claimant fell using an unsuitable trestle.
, Remoteness
Defendant will only be liable for such losses that were reasonably
foreseeable
Hadley v Baxendale (1854)
Court held that a party can only recover losses that arise naturally from
the breach or were within the reasonable contemplation of both parties at
the time of contracting, so the miller could not claim for lost profits
because the carrier had no reason to know the delay would shut the mill
down.
Mitigation
Claimants are under a duty to mitigate their loss; on other words
they cannot recover damages for losses which could have been
avoided if they took reasonable tests
Pilkington v Wood (1953)
Court held that a claimant cannot recover damages for losses they could
reasonably have avoided, and the court decided the buyer’s failure to
pursue a straightforward third-party claim broke the chain of causation,
limiting his recovery against the solicitor.
Calculating loss
Loss of expectations
Courts will aim to put claimant in a position they would have been if
the breach had not occurred, same financial position
A claimant would have expected a certain result from the contract
so damage will compensate for this loss
Golden Victory case (2007)
Courts held that damages for breach of a long-term contract should reflect
the actual loss suffered, so the charterer only had to pay up to the point
the contract would have ended anyway due to the outbreak of war.
Reliance loss
This is basis or calculating damages
What is a remedy?
A remedy is a solution in a civil case
An award made by court to the innocent party
There are two types of remedies:
1. Common law remedies of damages
2. Equitable remedies
Common law remedies
1. Damages
All common law remedies are available as of right if a contract is
breached
Purpose is to put the victim, so far as it is possible and so far, if the
law allows, in the same position he would be in if the contract had
not been broken
A) Pecuniary losses
▫ Financial losses that result from a breach of contract
B) Non- pecuniary losses
▫ Other losses such as mental stress, disappointment, hurt feelings, or
humiliation
Limitations on the awarding of damages
Causation
A person will only be liable for losses caused by their breach of
contract
Quinn v Burch Bros (Builders) Ltd (1966)
Court held that an exclusion clause cannot protect a party where they
have provided unsafe equipment and the risk was obvious, so the
employer was liable when the claimant fell using an unsuitable trestle.
, Remoteness
Defendant will only be liable for such losses that were reasonably
foreseeable
Hadley v Baxendale (1854)
Court held that a party can only recover losses that arise naturally from
the breach or were within the reasonable contemplation of both parties at
the time of contracting, so the miller could not claim for lost profits
because the carrier had no reason to know the delay would shut the mill
down.
Mitigation
Claimants are under a duty to mitigate their loss; on other words
they cannot recover damages for losses which could have been
avoided if they took reasonable tests
Pilkington v Wood (1953)
Court held that a claimant cannot recover damages for losses they could
reasonably have avoided, and the court decided the buyer’s failure to
pursue a straightforward third-party claim broke the chain of causation,
limiting his recovery against the solicitor.
Calculating loss
Loss of expectations
Courts will aim to put claimant in a position they would have been if
the breach had not occurred, same financial position
A claimant would have expected a certain result from the contract
so damage will compensate for this loss
Golden Victory case (2007)
Courts held that damages for breach of a long-term contract should reflect
the actual loss suffered, so the charterer only had to pay up to the point
the contract would have ended anyway due to the outbreak of war.
Reliance loss
This is basis or calculating damages
