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Remedies (Equitable Remedies (Rectification (Only permitted if the…

- - - - Remoteness of damages: when determining if the loss was not ‘too remote’ the court will seek:
        
        What damages arose naturally as a consequence of the breach (normal loss)
        
        What damages were of a kind that was foreseeable (foreseeable losses)
        
        Victoria Laundry v. Newman Industries [1949]
    - - Courts will compensate for
        
        ‘Expectation’ loss
        
        Referred to as: loss of profit
        
        What the injured party expected to gain under the contract had it been completed
        
        The purpose of compensation in this case is put the injured party in the financial position they would have been in had the contract been carried out properly
        
        Can be difficult to calculate
        
        Hawkins v Rogers (1951)
        
        ‘Reliance’ loss
        
        Money spent by the injured party as a consequence of entering into the contract
        
        Referred to as: actual loss/ expenses arising from the breach
        
        Easy to calculate, it is the actual financial loss incurred by the injured party
        
        The purpose of compensation is to return the injured party to the position he was in before entering the contract
- - - - Damages are an inadequate compensation
      - The specific performance would not cause undue hardship on the party in breach
      - Patel v Ali [1984]
    - - Contracts for personal services (employment contracts, contracts to perform) => It would be considered forced labour.
      - Contracts to advance money (compelling lender to lend or borrower to borrow)
      - Where the court cannot supervise the performance – where the constant supervision is required
      - Where one of the parties is a minor
      - Where the contract is considered unfair/unjust and where the conduct of the party seeking performance is questionable
  - - - Mandatory: directing the party in breach to undertake a specific course of action
      - Prohibitory: directing the party in breach to restrain from undertaking a specific course of action
      - Lumley v. Wagner (1952)
  - - - It is not possible to return parties to pre-contractual conditions
      - There is delay in seeking relief (justice delayed is justice denied)
      - The Court believes that it would cause greater injustice than the harm it sought to remedy.