Contract law damages problem question

  • Cases on damages in contract law

    Contract law has a general causation requirement providing that a loss can only be recovered if the breach "caused" the loss. 60 Additionally, there are three limitations on the recovery of expectations damages: the requirements of certainty, avoidability, and foreseeability..

  • Cases on damages in contract law

    The key characteristic of a problem question relating to misrepresentation is a statement made by a party, not found in the contractual terms, which turns out not to be true.
    This will indicate that there has been a potential misrepresentation..

  • What are the damages in a contract dispute?

    There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken.
    The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages..

  • What is limitation of damages in contracts?

    Contractual limitations on damages are agreements whereby the parties limit the availability of damages that would otherwise be available under statutory law..

  • What is the problem question on misrepresentation in contract law?

    The key characteristic of a problem question relating to misrepresentation is a statement made by a party, not found in the contractual terms, which turns out not to be true.
    This will indicate that there has been a potential misrepresentation..

Has the claimant suffered a loss?Is the loss suffered actionable?Did the breach of contract cause the loss?Was the type of loss foreseeable or was it too 

Can a breach of contract cause a loss to be actionable?

In order for a loss to be actionable, the claimant must show that the breach of contract caused the loss

Causation requires both legal, and factual causation

Factual causation requires an application of the ‘but for’ test; but for the breach of contract, would the claimant have suffered the loss?

What are the types of damages in a breach of contract?

They are: 1 Compensatory Damages

Compensatory damages (also called “actual damages”) cover the loss the nonbreaching party incurred as a result of the breach of contract

The amount awarded is intended to make good or replace the loss caused by the breach

A General Damages

What is a question involving damages?

A question involving damages can be identified relatively easily

There will be a breach of contract and you will be asked to consider the potential calculation of damages

You also may be asked more generally about the potential remedies, which will usually include damages

When addressing an issue involving the calculation of damages for a contract, this would be an appropriate approach:

  • Has the claimant suffered a loss?
  • Is the loss suffered actionable?
  • Did the breach of contract cause the loss?
  • Was the type of loss foreseeable or was it too remote?
  • Did the claimant mitigate the loss?
  • Did the claimant contribute to the loss?
  • Is there anything in the contract which agrees to a particular amount of damages?

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