Lecture 6 BFA601 Semester 1 2018.pptx

Anticipated or expected benefits that have been lost

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anticipated or expected benefits that have been lost, according to market value (6.45) The measure of damages (6.44) The measure of damages (6.44)
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Discharge of Contract and Remedies for Breach of Contract Discharge of Contract and Remedies for Breach of Contract Reliance loss: Calculated to compensate the plaintiff for losses incurred as a result of them having relied upon the other party performing their obligations and their failure to do so; otherwise The expectation loss will be used if reliance loss is inappropriate Commonwealth v Amann Aviation Pty Ltd (1991) The measure of damages (6.45) The measure of damages (6.45)
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Discharge of Contract and Remedies for Breach of Contract Discharge of Contract and Remedies for Breach of Contract The party suffering a breach has a duty to mitigate their losses (minimise them) Failure to mitigate may lessen the possible damages, or the court will make its own assessment. Mitigation is a question of fact, and assessed by a court Mitigation of damages (6.46) Mitigation of damages (6.46)
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Discharge of Contract and Remedies for Breach of Contract Discharge of Contract and Remedies for Breach of Contract Traditional approach is not award such damages Though some exceptions Jarvis v Swan Tours Ltd [1972] Farley v Skinner [2001] Baltic Shipping Co v Dillon (The Ship Mikhail Lermontov) (1993) Damages for disappointment and injured feelings (6.48) Damages for disappointment and injured feelings (6.48)
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Discharge of Contract and Remedies for Breach of Contract Discharge of Contract and Remedies for Breach of Contract Liquidated damages: a pre-estimate of the damages to be paid for breach of contract Example: building contracts , set penalties for lat completion Unliquidated damages: parties agree to damages but do not predetermine the amount Liquidated damages and penalties (6.51 - 52) Liquidated damages and penalties (6.51 - 52)
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Discharge of Contract and Remedies for Breach of Contract Discharge of Contract and Remedies for Breach of Contract Note: courts will not allow predetermined damages to be a penalty, they must be a genuine compensation Esanda Finance Corporation Ltd v Plessnig AMEV-UDC Finance Ltd v Austin Penalties vs liquidated damages is determined by circumstances and market estimations Courts may reject damages that are penalties, not statutory limits to damages Liquidated damages and penalties (6.53 -54) Liquidated damages and penalties (6.53 -54)
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Discharge of Contract and Remedies for Breach of Contract Discharge of Contract and Remedies for Breach of Contract Statutory liability regimes and limitation periods (6.55) Different States have legislation that limits liability in some instances, including negligent breach of contract, in particular for some professions. Note the statutory time limits imposed by legislation for bringing actions for breach of contract. LIMITATION ACT 1974 (Tas) as/consol_act/la1974133 /
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