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Law of Contract 3 (Remedies (equitable remedies (granted in exceptional…

- - - - (1) Put injured party in same position
        damages are to place the plaintiff in the same position he would be in if the contract had been performed properly
      - (2) Only for losses which arise naturally
        [1949] Victoria Laundry v Newman Industries Ltd
        Plaintiff bought boiler from defendant for laundry business. Defendant delivered five months late and due to delay, plaintiff lost normal profits and profits from new dyeing contract.
        Held: Only normal profits was recoverable and arose naturally from defendant's failure to deliver on time
      - (3) Only if both parties could have reasonably foreseen
        [1969] The Heron II
        Plaintiff sugar merchant, chartered defendant's ship to carry his sugar to Basrah & other overseas markets. Defendant reached Basrah nine day's late, by which time price of sugar had fallen
        Held" Plaintiff could recover loss since defendant should have reasonably foreseen that arriving after the market season would result in lower sugar prices
      - (4) Must mitigate your loss
      - (5) Can agree on fixed sum
        
        Before the BOC, a fixed sum - 'Liquidation Damages'
        
        pre-estimated monetary compensation agreed upon the parties
    - - where some work done but obligations not complete: can claim a proportional amount
      - an alternative to damages
- - - - cannot be any variation from agreed details
      - Conditions
        
        must be according to the terms
        
        must be within a specific time
        
        must be completed
    - - automatic termination upon event
      - expiry of time
      - prescribed method
      - mutual release, e.g. both parties agreed to end the contract
    - - one party breaches a term of contract; and the other party accepts the breach
      - only applies to breach of conditions: innocent party can discharge contract & claim damages
      - does not apply to breach of warranty: innocent party cannot discharge and must continue, but can sue for damages
    - - where the contract becomes impossible to perform due to circumstances beyond parties' control
      - [1863] Taylor v Caldwell: plaintiff entered into a contract to rent defendant's music hall for four nights of performances. Hall was accidentally destroyed by fire before the performance. Held: impossible to perform due to the fault of neither party.
      - Effects
        
        Common Law
        
        would not affect anything which takes place before the date of frustration
        
        before the frustrating event remains paid and cannot be recovered
        
        to be paid before the frustrating event must still be paid
        
        the parties do not have to perform anything under the contract after the date of the frustration
        
        Frustrated Contract Act
        
        can recover money paid before frustration
        
        money owed before frustration need not be paid
        
        can recover expenses incurred
        
        where on party has performed part of promise, the other party must pay reasonable sum