Damages for breach of contract
[1] The default measure of damages
Robinson v Harman – Per Parke B –
“The rule of the common law is, that where a party sustains a
loss by reason of a breach of contract, he 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”.
- Need to find the amount of money that would put the innocent
party in the same position as if the contract had been
performed (monetary difference between now and if the
contract were performed).
British Westinghouse Co. Ltd v Underground Electric Railways Co.
Ltd – Per Viscount Haldane (HL)
“I think that there are certain broad principles which are quite
well settled:
The first is that, as far as possible, he who has proved a breach of
a bargain to supply what he contracted to get is to be placed, as
far as money can do it, in as good a situation as if the contract
had been performed…
“The fundamental basis is thus compensation for pecuniary loss
naturally flowing from the breach; but this first principle is
qualified by a second, which imposes on a plaintiff the duty of
taking all reasonable steps to mitigate the loss consequent on
the breach, …”
- May end up over compensating, innocent party is to behave
as they so reasonably can and minimize loss (mitigation)
- E.g. 10 yr work contract but sack you after 5, can’t just sit at
home with no job for 5 years, need to mitigate loss and get
another job.
The Unique Mariner (No 2) –
The damages to which the contractors are entitled should be
assessed on the usual principle of restitution in integrum.
For this purpose, an estimate should be made of the salvage
remuneration which the contractors would have earned if they
had been allowed to complete the services, and deductions
should be made for risks not run and for expenses and operating
time [if any] which were or could be reasonably saved.
Chaplin v Hicks [1911] –
Newspaper beauty competition
12 winners would receive roles as an actress with a well known
actor and his company
6,000 photos sent in. 300 published in regional heats
readers in each region voted for most beautiful. Top 5 in each of
the top regions interviewed by well known actor.
Plaintiff unable to make interview and not given an alternative
time.
Per Vaughan Williams LJ-
[1] The default measure of damages
Robinson v Harman – Per Parke B –
“The rule of the common law is, that where a party sustains a
loss by reason of a breach of contract, he 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”.
- Need to find the amount of money that would put the innocent
party in the same position as if the contract had been
performed (monetary difference between now and if the
contract were performed).
British Westinghouse Co. Ltd v Underground Electric Railways Co.
Ltd – Per Viscount Haldane (HL)
“I think that there are certain broad principles which are quite
well settled:
The first is that, as far as possible, he who has proved a breach of
a bargain to supply what he contracted to get is to be placed, as
far as money can do it, in as good a situation as if the contract
had been performed…
“The fundamental basis is thus compensation for pecuniary loss
naturally flowing from the breach; but this first principle is
qualified by a second, which imposes on a plaintiff the duty of
taking all reasonable steps to mitigate the loss consequent on
the breach, …”
- May end up over compensating, innocent party is to behave
as they so reasonably can and minimize loss (mitigation)
- E.g. 10 yr work contract but sack you after 5, can’t just sit at
home with no job for 5 years, need to mitigate loss and get
another job.
The Unique Mariner (No 2) –
The damages to which the contractors are entitled should be
assessed on the usual principle of restitution in integrum.
For this purpose, an estimate should be made of the salvage
remuneration which the contractors would have earned if they
had been allowed to complete the services, and deductions
should be made for risks not run and for expenses and operating
time [if any] which were or could be reasonably saved.
Chaplin v Hicks [1911] –
Newspaper beauty competition
12 winners would receive roles as an actress with a well known
actor and his company
6,000 photos sent in. 300 published in regional heats
readers in each region voted for most beautiful. Top 5 in each of
the top regions interviewed by well known actor.
Plaintiff unable to make interview and not given an alternative
time.
Per Vaughan Williams LJ-
