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Damages For Breach (Remedy (Reputation- available when there has been…
Damages For Breach
Remedy
Reputation- available when there has been breach of a condition. Any good supplied or money paid under the contract must be returned. Innocent party may also claim damages.
Damages- Available for all kinds of breach of contract. Monetary compensation is paid to the innocent party.
Liquidated Damages- The amount agreed by the parties agree in advance as reasonable compensation in the event of a breach
Unliquidated Damages- Those which have not been agreed to in advance, and which will be decided by the court
A defendant is only liable for losses that they have caused and which are reasonably foreseeable. Also the claimant is expected to mitigate their loss.
Remoteness of damage
This is the test used by the courts to decide whether losses resulting from a breach of contract are recoverable - "reasonable contemplation"
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Two categories of lossage recognised. Direct or Normal losses which are usual result of the breach of contract and Indirect or Abnormal losses which are not usual, but are still within the parties. Contemplation at the time the contract was made .
Common Knowledge of parties- Loss arising naturally from the breach of contract of contract in the ordinary course of things
Actual knowledge of parties- Loss which was reasonably within the contemplation of both parties when the contract was formed i.e. abnormal loss
Causation
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The rule is that the breach must be the main cause of the Claimant' s loss i.e. but for D's breach of contract the claimant would not have suffered the loss
Even though the party breaching the Contract may not be solely responsible for the loss may still be liable for it. (Stansbie)
Mitigating Loss
The claimant must do his/her best keep the loss suffered to minimum i.e. mitigate (minimise their losses. This means the Claimant cannot recover losses which have been avoided, or could have been reasonably avoided
Purposes of damages- Damages are intended to place an injured party "in the same satiation they would have been in if the contract had been performed. Robinson v Harman