11. Damages
contractual damages
monetary award aimed at putting the claimant in the position it would
have been in if the other party had performed according to the contract
11.1 Damages in contract and tort
tortious obligations
damages aim to restore claimant to position but for tort
both cases
damages designed to put claimant in position if obligation had not been
broken
in tort
obligation not to do wrong
not to make someone worse off
in contract
obligation to fulfil promise and expectation generated
11.2 Aim of contractual damages
expectation and reliance interests
Robinson v Harman (1848)
‘the claimant is so far as money can do it, to be placed in the same
situation, with respect to damages, as if the contract had been
performed’
protects expectation (or performance) interest
which defendant’s breach has caused you to lose
alternative measure
11. Damages 1
, reliance interest
puts claimant in position as though he had not relied on the
contract
expectation interest
equates to net value of what innocent party would have received if
contract had been performed
reliance interest
extent to which innocent party is worse off as a result of relying on
contract
good and bad bargains
evidential difficulties
McRae v Commonwealth Disposals Commission (1950)
Anglia Television Ltd v Reed (1972)
orthodox analysis
appears to resolve any doubts about whether the claimant can choose
reliance measure
11. Damages 2
contractual damages
monetary award aimed at putting the claimant in the position it would
have been in if the other party had performed according to the contract
11.1 Damages in contract and tort
tortious obligations
damages aim to restore claimant to position but for tort
both cases
damages designed to put claimant in position if obligation had not been
broken
in tort
obligation not to do wrong
not to make someone worse off
in contract
obligation to fulfil promise and expectation generated
11.2 Aim of contractual damages
expectation and reliance interests
Robinson v Harman (1848)
‘the claimant is so far as money can do it, to be placed in the same
situation, with respect to damages, as if the contract had been
performed’
protects expectation (or performance) interest
which defendant’s breach has caused you to lose
alternative measure
11. Damages 1
, reliance interest
puts claimant in position as though he had not relied on the
contract
expectation interest
equates to net value of what innocent party would have received if
contract had been performed
reliance interest
extent to which innocent party is worse off as a result of relying on
contract
good and bad bargains
evidential difficulties
McRae v Commonwealth Disposals Commission (1950)
Anglia Television Ltd v Reed (1972)
orthodox analysis
appears to resolve any doubts about whether the claimant can choose
reliance measure
11. Damages 2
