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Week 6 Remedies in Contract Cases

By: Brendon & Viknesh

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What is a Remedy ? The manner in which a right is enforced or satisfiedby a court when some harm or injury, recognized bysociety as a wrongful act, is inflicted upon anindividual.

Types of Remedies in Contract Law Termination Damages

Specific Performance Injunction Rescission

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Termination Bringing a contract to an end so that all futureobligations are cancelled

Ways of terminating a Contract Performance - Hoeing v Isaacs Agreement Term of the Contract

Frustration - Davis Contractors Ltd v Fareham Urban District Council Breach of Contract Serious Breach of an intermediate Term Repudiation Anticipatory Breach

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Damages Monetary payment calculated to compensate the

innocent party for the loss caused by the breach of contract

To put the plaintiff in the position he or she would have

been in if the contract had been properly performed

Requirements for Damages claim Losses must be caused by Breach of the Contract

Plaintiff has a duty to mitigate losses

Damages must not be too remote

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Circumstances where damages may be claimed Expectation losses Personal injuries

Disappointment, distress, discomfort?

Damages - Hadley v Baxendale

The defaulting party in breach will be liable for losseswhich flow according to the usual course of things fromthe breach

The party in breach is only liable for losses that werewithin the reasonable contemplation of the parties at thetime the contract was made

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Specific Performance

Court order requiring one party to carry out his or hercontractual obligations Dougan v Ley

Injunction Court order restraining one of the parties to a contractfrom breaching his or her contractual obligations

The court may rectify a contract if there is an error inthe contract both parties signed

Rectification of Contract

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Restitution

Not a Contractual Remedy

Where the defendant has gained a benefit at theexpense of the plaintiff

Would be unjust in the circumstances to allow thedefendant to retain that benefit the courts will make anorder

Enables plaintiff to claim a reasonable amount from thedefendant for goods or services rendered

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Rescission Act of bringing a contract to an end Parties are restored as far back as possible to theposition they occupied immediately prior to the contract

Contracts may be Rescinded for:

In equity Misrepresentation Duress Undue influence Mistake Unconscionable conduct

Statutes ACL Contract Review Act 1980 (NSW)

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Contracts in Major Report Contract 1

Alice and Charlies initial contract

Contract 2 Alice and Charlie final contract

Contract 3 Alice and Ieysu

Contract 4 Alice and Lina & Steve

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Contract 1 - Alice and Charlies initialcontract

Damages Was there a breach ? Plaintiff has a duty to mitigate losses Damages must not be too remote Hadley v Baxendale

Termination by Performance Hoeing v Isaacs

Termination for breach of a condition of the contract

Specific Performance Dougan v Ley

Termination by Frustration Davis Contractors Ltd v Fareham Urban District Council

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Contract 2 - Alice and Charlies finalcontract

Damages Was there a breach ? Plaintiff has a duty to mitigate losses Damages must not be too remote Hadley v Baxendale

Specific Performance Dougan v Ley

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Contract 3 Alice and Ieysu

Damages Was there a breach ? Plaintiff has a duty to mitigate losses Damages must not be too remote Hadley v Baxendale

Termination for breach of a condition of the contract

Recession for mistake as a defence

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Contract 4 Alice and Lena & Steve

Damages Was there a breach ? Plaintiff has a duty to mitigate losses Damages must not be too remote

Hadley v Baxendale

Personal injuries Baltic Shipping Co v Dillon

For medical expenses

Disappointment Javis v Swans Tours Ltd