Module Name: Contract Law

SU Reference Number: 22051441

 A) The damage to the property

A breach of contract refers to the failure to fulfil the terms of the contract by either of the
party. Under contract law, there are many remedies available for breach of contract, such as
damages, rescission, and specific performance. In this scenario, considering the property
damages, Shehan contracted with Stone Works to rewire his house, but SWC's negligence led to
an electrical short circuit and caused fire damage amounting to 15,000 pounds.
So, if we are discussing the available remedy for the damages caused to property, we could use
'damages', which is a sum of money paid to the innocent party in compensation for a loss
caused by a breach of contract. To measure damages, expectations and reliance measures are
used. Expectation loss is to put the party in a position as if a contract was performed, and
reliance loss is to put the party back in an initial position as if a contract wasn’t entered into.
In this scenario, if we apply expectation loss to recover the property damage, as in the case of
Robinson v. Harman, Harman contracted to lease a house to Robinson and later refused to
complete Robison's action for damages, recovered for his expenses, and applied for loss of
bargain where a party agrees to grant a good lease in knowledge he doesn’t hold the full title.
In this case, it’s held that if a party incurs a loss by breach of contract, as far as money can do, it
can be placed in the same situation. If we apply the case to this scenario, swc’s negligence
caused damage to Shehan’s property amounting to 15,000 pounds, the measure of the
damages would be the cost of restoring the property to its condition before the damage
occurred, so the cost of cure would be 15,000 pounds. Also, if we apply the 2 rules established
in Hadley v. Baxendale, in the Hadley case, it was foreseeable that negligence in repair could
cause damage. Also, SWC’s were informed of the wedding, so damages could be recovered

B) The hotel costs

Considering the remedy for the hotel costs. In this scenario, Shehan had to move into a luxury hotel at a
weekly expense of 2500 pounds because of the fire damage caused to his house by SWC’s negligence,
which made the property uninhabitable. In this case, the expectation would be that the rewiring project
was completed without any issues, allowing Shehan to continue to reside in his house without the need
for alternative accommodation, so the hotel cost incurred due to the uninhabitable property represents
a direct consequence of SWC’s breach of contract. In the case of Koufos v czarnikow Ltd. It was
established that direct damages allow for the recovery of losses that arise directly from the breach. In
this case, the claimant chartered a ship from the defendant for the carriage of sugar to Basrah, where
the sugar was to be sold. The ship arrived in Basrah nine days late, and in those nine days, the price of
sugar had fallen sharply. D had not known that C intended to sell the sugar immediately but knew that
there was a market for sugar in Basrah. C sued D for breach of contract, claiming damages that included
the loss of profits from sales in Basrah. It was held that the loss due to fluctuations in the market price
was likely to result from the breach of contract. If we apply this case to the scenario, cancellation of
receipt is a direct consequence of SWC’s breach of contract, so it could be recoverable. Also, if we apply
the 2 rules established in Hadley v. Baxendale, it was foreseeable that negligence in repair could cause
damage. Also, SWC’s were informed of the wedding, so damages could be recovered.

C) cancelled reception cost

Reliance loss is typically considered when the innocent party has made expenditures in reliance on the
contract, even if the contract is not ultimately fulfilled. In this scenario, reception was cancelled because
of the fire damage caused to Shehan’s house due to SWC’s negligence. And it has incurred 8000 pounds
as the receipt got cancelled; it is now a wasted expenditure on Shehan’s side. As reliance loss puts the
party back to the original position, as if a contract wasn’t entered into, he could use this remedy to
recover his cancelled reception cost. For example, in the case of Anglia TV v. Reed, an actor was
contracted to act in a film and later refused, but the claimant was able to recover the wasted expenses
before and after the contract was made, including director's fees. In this scenario, the reception got
cancelled due to the fire damage caused by the SWC’s negligence, so Shehan could recover 8000 pounds
of wasted expenditure from stone works.

D) Non pecuniary losses

Non-pecuniary loss refers to losses that are not directly associated with financial damages but rather
related to emotional distress, inconvenience or other intangible harm. In this scenario, it's mentioned
that the unforeseen damage caused distress to Shehan, and it has also affected his fiancé because of the
house and the cancellation of the wedding plan. Considering the remedies for this situation, the fire
damage that occurred to the house could cause emotional distress as it’s the place he used to live, and
living in another place apart from the house could cause discomfort. For example, in the case of Farely v.
skinner, Farley contracted with Skinner to prepare a survey on a property he was planning to purchase
that was 15 miles away from the airport. Although Farely specifically requested to be sure whether it
would be affected by aircraft noise, Skinner reported that it was unlikely to happen. So Fairley
purchased it, and it was affected by aircraft. He sought damages, and he recovered 10,000 pounds for
his discomfort. And it was held in this case that damages could be recoverable for the loss of a
pleasurable amenity, which may be of no economic value if they are important to the claimant. If we
apply this judgment to this scenario, Shehan could recover non-pecuniary damages for the emotional
distress and discomfort.

Considering the distress caused by the cancellation of the wedding plan, in the case of Jarvis v. Swann
Tours, Jarvis was able to claim 125 pounds. Non-pecuniary damages for his disappointment and distress
caused by the holiday with Swann Tours, so as the wedding includes pleasurable amenity and
cancellation of such a big event of people could cause distress, Shehan could be able to recover
damages. For the distress caused to Maria by the cancellation of the wedding, non-pecuniary damages
could be claimed, as in the case of Jackson v. Horizon Holidays, though it was Jackson who contracted,
his family was still able to claim damages because he entered into the contract for his family’s benefit. If
we apply this case to this scenario, Maria is the bride and might be able to claim non-pecuniary damages
for the wedding cancellation.