Max's Legal Refresher - Contract Law (II) - Flashcards in University Law

1. What is the best synthesis of remoteness rules in breach of contract?

Liable for all harm resulting of same type as that envisaged as serious possibility
Loss of a kind within reasonable contemplation of parties at time contract made as not unlikely to result from circs reasonably known to parties, or if more appropriate, loss of kind for which C prob assumed responsibility
Natural consequences of breach OR reasonably supposed to be in contemplation of parties at time contract made as probable result of special circs known to them
Should now always view remoteness through lens of ‘assumption of responsibility’ (i.e. “for what kind of loss would he reasonably be taken to have accepted liability?”

1 of 20

Third party must have inferred that the agent had authority from the conduct of the parties and the circumstances of the case
Third party must alter his position, eg by entering into contract
Third party must rely on the representation believing that the agent had authority
Principal must have represented (by words or conduct) that the agent had authority

Equitable remedy whereby ct will award innocent party a sum reflecting what he might have obtained had D not acted unjustly (Wrotham Park Estate)
Equitable remedy whereby party does or commences work under a contract, then the payer changes mind and ends contract, working party can bring claim
In exceptional cases, ct can award all financial benefits obtained by D, where C has suffered no loss but seen as equitable to do so (Blake)
Equitable remedy whereby party in receipt of money fails to even begin to perform any of the obligations in the contract, payer can bring claim to recover the money already paid

If breach is only not paying a sum of money, then if amount in clause > amount which ought to have been paid -> specified damages
Can be SD even if difficult / impossible to pre-estimate
Amount far beyond what could reasonably be proved to result from breach -> penalty
If a single lump sum is to be paid on happening of one or more of several events, some of which may cause serious and some minor damage -> rebuttable presumption of penalty

Can recover expenditure wasted because of breach, but only when clear what profit/gain would be (Anglia TV)
When assessing damages on an "expectation loss" basis, if defective goods then difference in value (DIV), if defective services then cost of cure (COC)
If DIV or COC inappropriate (e.g. out of proportion to actual loss) can claim for ‘Consumer Surplus’, i.e. subjective notion of improvement in amenity (Ruxley)
Generally 0 for injured feelings (Addis), but one exception = when object of the contract is to afford pleasure (Jarvis v Swan’s Tours, where amount awarded was double that paid for holiday)

Similar Law resources:

See all Law resources »

See all Contract resources »