Question 1

Discuss the principles of law relating to claimable losses as laid down by the Court in the case of
Hadley v Baxendale (1854) 2 CLR 517; 9 Exch 341.

What are the principles of law relating to claimable losses

Types of claimable losses

Definition

Cases

What is the relevantcase authority?

State the brief facts, issue and decision of the case

Can the Plaintiff claim all losses from the Defendant?

Principle of law/GR

-definition of claimable losses

-definition of direct and consequential loss

-example case: Hadley v Baxendale (1854) 2 CLR 517; 9Exch 34.

Case Study

Johanna contracted to sing in Benjamin’s theatre for a fixed period of 6 months. She also promised
that, during this period, she would not to perform anywhere else.

Garden Musica, a competitor theater, persuaded Johanna to come and sing sing for Garden
Musica instead. Johanna agreed to sing at Garden Musica whenever she is not performing for
Benjamin.

When Benjamin found out, he wanted to sue Jonanna for breach of contract.

Using the 4 Step Process advise Benjamin if he would be successful in applying for Specific
Performance against Johanna.

Step 1

The area of law is specific performance.

Step 2
 1. Types of remedy

2. Definition

3. When available/not available

4. Cases

State the brief facts, issue and decision of the case

-definition of specific performance

-not available-

- contracts of personal service example case: Lumley v Wagner (1852) 42 ER 687.

-not available if constant supervision of courts necessary.

-subject matter is readily available

-matter of court’s discretion. Example case: Dougan v Ley & Another (1946) 71 CLR 147

Step 3

Who are the parties

What was the term of the contract?

Did Johanna comply with the term?

What did Johanna do?

Can Garden Musica sue Johanna?

What facts could Garden Musica use to support their claim against Johanna?

What remedy would be most suitable in this case?

1. Johanna and Benjamin.

2. Johanna will sing in Benjamin’s theatre for a fixed period of 6 months- she would not
perform anywhere else during this period.
3. Johanna breached the term.
4. she sang at Garden Musica during her free time
5. No
6. contract of personal service- not order specific performance of such agreements.
7. no
Step 4

Benjamin may not be successful in applying for Specific Performance.