Remedies 1 - Damages Lecture 21a Contract Law Overview of remedies for breach of contract: In the event of breach of contract, there are several possible remedies available: - Damages - Restitution (also known as account for profits) - Specific performance - Injunction - Statutory remedies - Other equitable remedies (e.g. Anton Pillar Order, Mareva injunction - not covered in this module). What are damages? A monetary compensation awarded to a Plaintiff to put him/her in a position as if the contract had been performed by the party at fault, usually by the party who has breached the contract. Rationale for the court awarding damages in restoration, not punishment. It is compensatory in nature. Robinson v Harman (1848): "the rule of the common law is, that where a party sustains loss by reason of a breach of contract, he is, so far as money can do it, to be placed in the same situation, with respect to damages, as if the contract had been performed." Farley v Skinner [2001] - Lord Scot "the basic principle of damages for breach of contract is that the injured party is entitled, so far as money can do it, to be put in the position he would have been in if the contractual obligation had been properly performed. He is entitled, that is to say, to the benefit of his bargain." Damages in Contract and Damages in Tort Damages in contract: Claim for breach of contract allows the Plaintiff (P) to be compensated as if the terms of the contract had been performed by the other party. Thus, P is put back into the position that he/she would have expected to be in had there not been a breach of contract. Damages in tort: Claim for damages in tort focuses on restoring P to the position he/she was in prior to the occurrence of tort.
- Intentional harm inflicted on the victim. - Negligence (e.g. giving of negligent advice) Contract law and tort law overlap - common. E.g. entering into finance contract based on negligent advice given. Measuring of Damages: Expectation Interest: equates to the net value of what the innocent party would have received if the contract had been performed. Reliance interest: The extent to which the innocent party is worse off because of relying on the contract. Restitution Interest: Defendant must give back or give up some or all the profits that he made from his breach of contract. - Focus of the court in awarding damages in restoration to the extent possible. - In meaning (or assessing) the number of damages, courts have adopted: o Expectation measure o Reliance measure Difference between expectation loss and reliance loss Example: " P had contract to buy plasma TV from D for £1000ti " P was hoping to re-sell that brand new TV for £1fl00. · TV was delivered in defective condition, now worth only £900. " Breach of contract " Expectation loss would be £300 = 1fl00 - 900 " Reliance loss would