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Remedies for Breach of Contract - Coggle Diagram
Remedies for Breach of Contract
Damages that arise in breach of contract
Unliquidated Damages
Damages that were not pre-agreed
4 Aspects of Damages
Causation in Fact
'But-for' test: Plaintiff must show that his loss would not have occured
but for
the defendant's breach of contract
Remoteness: Causation in Law
Will not award damages if loss is too disconnected from breach
Hadley v Baxendale
Limb 1: Arise naturally, i.e. according to normal course of things
Koufos v C Czarnkow Ltd (The Heron II) 1969
Limb 2: Has been in reasonable contemplation of parties at time of contract
Victoria Laundry Ltd v Newman Industries Ltd 1949
Mitigation
Taking reasonable steps to reduce and minimise the severity of losses caused by breach, by seeking alternative sources to rectify the problem
The Asia Star 2010
Assessment of (non-liquidated)Damages: Measure of loss
To put the innocent party, so far as money can do it, in the same position he would have been if the defendant had properly carried out the contract
Pecuniary Losses
Expectation Loss
Chaplin v Hicks 1911
Examples of bases of claims under EL:
Cost of Cure (Hoening v Isaacs)
Diminution in Value (Raffles Town Club v Tan Chin Seng & Others 2005)
Loss of Amenity (Ruxley Electronics Ltd v Forsyth 1996)
Reliance Loss
Anglia Television Ltd v Reed 1972
Incidental Loss
Time of assessment
Compensatory damages are to be assessed at time of breach
Su Ah Tee v Allister Lim & Anor 2014
Assumptions
:
Plaintiff knows of breach as soon as it is committed
Plaintiff couldd have taken reasonable steps to mitigate his loss at that point
Reasonable for him to take such steps
Non-Pecuniary Loss
Haron bin Mudir v Singapore Amateur Athletic Association
Exceptions:
Holiday/Enjoyment cases - The Jarvis exception
Jarvis v Swan Tours 1972
Where an important (not necessarily the sole) object of the contract is to give pleasure, relaxation, peace of mind (Farley v Skinner 2001)
No loss = Nominal damages awarded
Liquidated Damages
Damages that were negotiated beforehand and pre-agreed
LD Clause: A clause in contract that has quantified the amount of damages payable for breach
Equitable Remedies
Specific Performance
Injunction
Restitutionary Remedies
Quantum Meruit
Accounts of profits
Refund of money paid