REMEDIES.pdf - ©Salmiahsallehlaw251/379.299remedies 2017/18 REMEDIES Salmiah Salleh 1 ©Salmiahsallehlaw251/379.299remedies 2017/18 REMEDIES BREACH OF

REMEDIES.pdf - ©Salmiahsallehlaw251/379.299remedies...

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©Salmiahsallehlaw251/379.299remedies 2017/18 1 REMEDIES Salmiah Salleh
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©Salmiahsallehlaw251/379.299remedies 2017/18 2 REMEDIES BREACH OF CONTRACT REMEDIES RESCISSION DAMAGES SPECIFIC PERFORMANCE INJUNCTION QUANTUM MERUIT
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©Salmiahsallehlaw251/379.299remedies 2017/18 3 1. RESCISSION OF CONTRACT Section 40 party not in default can choose to rescind the contract illust (a) Must return any benefits obtained s 65 Illust (c) s65 MURALIDHAR CHATTERJEE’s case Held: if party had wrongfully refused to perform his part of the contract, and the party not in default had rightly rescinded the contract under s40, the party not in default is bound under s65 to restore to the party in default any benefit received from him under the contract.
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©Salmiahsallehlaw251/379.299remedies 2017/18 4 2. DAMAGES Section 76 party not in default if rescinds contract, also entitled to compensation for damages sustained because of non - fulfillment of the contract. Purpose? to put the P, so far money can do, in the same situation as if the contract has been performed (Robinson v Harman, per parke B).
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Yong Mok Hin Court: a party who rescinds the contract under s 40 is entitled to damages under s 76 + is entitled to restoration of any advantage or benefit enjoyed by the party in default as provided under s 66. ©Salmiahsallehlaw251/379.299remedies 2017/18 5
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Hsu Seng Held: since the P has exercised his option to rescind the contract, the P was entitled to the refund of $72,000 + interest + also awarded $6,000 liquidated damages. ©Salmiahsallehlaw251/379.299remedies 2017/18 6 P D Paid $72,00 as part payment of $120,000, the price Certain obligations
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©Salmiahsallehlaw251/379.299remedies 2017/18 7 Measure of damages recoverable s74 (re - enacted the common law rule in the case of Hadley v Baxendale) S74(1) when a contract has been broken, the party who suffers…is entitled to receive, from the party who has broken the contract: a. compensation for any loss or damage caused…which naturally arose in the usual course of things from the breach, or ( ordinary damages ) b. Compensation for any loss or damage caused… which the party knew, when they made the contract to be likely to result from the breach of it. ( special damages) Such compensation is not to be given for any remote and indirect loss or damage…
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©Salmiahsallehlaw251/379.299remedies 2017/18 8 Types of damage under s 74 Ordinary damages (arising naturally) s 72(1)(a).
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