Contract: Damages

Damages

Define: If there has been a breach of contract then the innocent party can sue in court for damages, the main aim of damages is to put the Claimant in the position they would be in had the contract been properly completed. 

Loss: What the Claimant has lost as a result of the breach. 

Victoria Laundry v Newman: Held the loss was of five months worth of profit due to the late delivery of the boiler. 

Causation: Was the breach of contract the main cause of the loss. 

Stansble v Troman: Held the defendant was liable for the loss as it was a direct result from the failure to fulfil his contractual duty to lock the door.

Remoteness: The Claimant is not allowed to claim for the loss that is considered too remote a consequence of the breach. 

Hadley v Baxendale: Held the Claimant should get damages if the loss naturally from the breach of contract and the loss was reasonably contemplatable by both parties at the time the contract was made. 

Mitigation of loss: The innocent party must take reasonable steps to mitigate their loss.