(Notes) Contract - Remedies - CONTRACT DAMAGES AND...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CONTRACT – DAMAGES AND EQUITABLE REMEDIES (Pg 205) (LINKED TO BREACH!! DISCHARGE!!) Damages (Pg 206) – Monetary compensation that is the principal common law remedy for a breach of contract Principal common law remedy for a breach of contract. - Refers to monetary compensation payable by the defaulting party to injured party - General intention is compensatory, to put injured party, as far as money can do it, in same position he would be in if contract had been performed properly Causation (Pg 208) Irawan Darsono & Another v Ong Soon Kiat (2002) – For damages to flow, the loss must have been caused by the breach. APPLY “BUT-FOR” TEST!!! Monarch SS Co v Karlshamns Oljefabriker (A/B) (1949) – The HOL held that the effective cause of their delay was the vessel’s unseaworthiness and hence it was the appellant’s fault. The prohibition by the British authorities was not the cause of the delay. Remoteness (Pg 209) Remoteness limits the extent of loss that can be claimed. Damage must be proximate & not remote for damages to be recoverable Hadley v Baxendale (1854) – the following damage may be claimed 1. First Limb (normal loss) – such damage as may fairly or reasonably be considered arising naturally, i.e. according to the usual course of things from the breach itself [imputed knowledge] 2. Second Limb (abnormal loss) – such damages as may reasonably be supposed to have been in contemplation of both parties at the time they made the contract [actual knowledge] Usual course of things Loss arising from normal business activity will usually fall within the first limb. Koufos v C Czarnikow Ltd (“The Heron II”) (1969) - The House of Lords held that Koufos must be imputed to know the ordinary practices and exigencies of Czarnikow’s business – in particular that prices in a commodity market can fluctuate. Accordingly, Koufos was liable under the first limb. Actual Knowledge of Special Circumstances Victoria Laundry (Windsor) Ltd v Newman Industries Ltd (1949) – A person with actual knowledge of special circumstances will be liable for the higher loss which may arise if the breach occurred in those circumstance. In the absence of actual knowledge concerning the Ministry of Supply, Newman Industries would not be liable for the substantial profits foregone because of the failure to obtain that contract. Probability of Occurrence The defendant must know that the likely loss is a serious possibility or a real danger. Type of Damage Chuan Hup Marine Ltd v Sembawang Engineering Pte Ltd (1995) – The defendant need not have in mind the exact damage actually suffered as long as he is aware of the type or kind of damage in question. Mitigation (Pg 213) British Westinghouse Electric & Manufactory Co v Underground Electric Railway Co of London (1912) , accepted in Singapore in Chua Keng Mong v Hong Realty Pte Ltd (1994) The plaintiff has the duty to take all reasonable steps to mitigate the loss consequent on the breach, and will not be able to claim any part of the damage which is due to his neglect to take such steps.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

0/0 PREVIEWS LEFT
Sign up to access 24/7 study resources for your classes

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern