to compensate the victim for their actual loss as a result of the wrongdoer¶s breach rather thanto punish the wrongdoer. If no loss has been occasioned by the plaintiff, only nominaldamages will be awarded.A victim will not necessarily recover every loss which flows from the breach by thedefendant. In order to recover any damages, the losses suffered by the victim must be caused by the defendant, and not be too remote. Further, the plaintiff has a duty to mitigate hislosses.
2. Define ³reliance loss´ and ³expectation loss´. When and how is each applied in measuringdamages?In contract cases, thecourtis usually interested in securing the performance of what was agreed.Where one party is about to or has suffered loss as a result of the other's breach, the court offerspractical protection to his or her expectations as to performance (in some cases, the use of injunction or specific performancemay be appropriate). Where a party pro
es that he or she has sustained lossflowing from any breach (potentially including non-pecuniary or intangible losses, e.g. for disappointment, damage to reputation, etc.), the purpose of damages is, so far as money can do it, toplace the claimant in the same situation as if the contract had been performed. Thus, the mostrele
ant basis upon which to calculate any loss is to examine the economic potential of the contractas worded. This will pro
ide a measure of what the claimant expected to gain, and so quantify whathas been lost by the breach.3. What is the rule in
? How has it de
eloped since the time of that case?4. "A party to a contract has an unfettered choice between performing the contract andcompensating the other party."Is this statement true?
When are injunctions and specific performance orders a
ailable as remedies?
6. Do you agree that there is little merit in the rule against penalties, when the lawmakes it so easy to produce results similar to a penalty clause through other forms of contract term? What do you consider to be the benefits anddisad
antages of the rule against penalties in modern commercial conditions?
ease come prepared to discuss the fo
Andy, a young aristocrat, wanted to buy a country house in Rutland to use as a weekend home. Heinstructed Bob to sur
ey it, saying to him that he was particularly concerned about noise, as one of the purposes of buying the house was to enable him to relax with his friends at weekends. Bobagreed to sur
ey the house for £800 and to in
estigate the question of noise. In his report he statedthat the property was in good condition and there was no problem with noise. Andy therefore bought