Unit 21 - P7
FOR NOTES AND GUIDLINE PURPOSES ONLY, COPYING THE
WHOLE DOCUMENT WILL BE COPYWRITE.
USE SENSIBLE.
In this task I am going to describe the remedies available for
consumers at the breach of a contract.
Remedies
When one party breaks the terms of a contract, the other
injured party will be able to gain some form of compensation
for the loss of contract. This is aimed at ensuring that the injury
party has not lost out.
Liquidated damages:
It is common for parties to agree in advance the amount of
damages that will paid in the event if the breach of contract.
For example if a firm cancelled a customer’s holiday with more
that 28days notification, they pay the customer 100% of the
holiday cost and £5 back.
Unliquidated damages:
Unliquidated damages are those damages awarded agreement
between the parties as to the amount of damages to be
awarded. The aim of this is to put the person in the; position
they would have been in had the contract been carried out
correctly. They are to compensate only for loss suffered.
Mitigation of loss:
Mitigation is the idea that a person will try to regain as much of
their loss as possible if the contract is in breach. For example,
once a breach of contract has occurred the innocent party is
under a duty to mitigate or lessen their loss as soon as
possible. Victims simply cannot stand back and allow their
losses to get worst.
The brothers have refused to deliver the materials to Mrs Patel
as she has failed to make prompt payment however have
compromised to deliver the goods if Mrs Patel would pay with
cash in hand. The day brothers are allowed to resale the
FOR NOTES AND GUIDLINE PURPOSES ONLY, COPYING THE
WHOLE DOCUMENT WILL BE COPYWRITE.
USE SENSIBLE.
In this task I am going to describe the remedies available for
consumers at the breach of a contract.
Remedies
When one party breaks the terms of a contract, the other
injured party will be able to gain some form of compensation
for the loss of contract. This is aimed at ensuring that the injury
party has not lost out.
Liquidated damages:
It is common for parties to agree in advance the amount of
damages that will paid in the event if the breach of contract.
For example if a firm cancelled a customer’s holiday with more
that 28days notification, they pay the customer 100% of the
holiday cost and £5 back.
Unliquidated damages:
Unliquidated damages are those damages awarded agreement
between the parties as to the amount of damages to be
awarded. The aim of this is to put the person in the; position
they would have been in had the contract been carried out
correctly. They are to compensate only for loss suffered.
Mitigation of loss:
Mitigation is the idea that a person will try to regain as much of
their loss as possible if the contract is in breach. For example,
once a breach of contract has occurred the innocent party is
under a duty to mitigate or lessen their loss as soon as
possible. Victims simply cannot stand back and allow their
losses to get worst.
The brothers have refused to deliver the materials to Mrs Patel
as she has failed to make prompt payment however have
compromised to deliver the goods if Mrs Patel would pay with
cash in hand. The day brothers are allowed to resale the
