Week 6 Remedies in Contract Cases

By: Brendon & Viknesh

What is a Remedy ?
The manner in which a right is enforced or satisfied by a court when some harm or injury, recognized by society as a wrongful act, is inflicted upon an individual.

Types of Remedies in Contract Law

Termination Damages Specific Performance Injunction Rescission

Termination
Bringing a contract to an end so that all future obligations 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

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

Damages - Hadley v Baxendale

The defaulting party in breach will be liable for losses which flow according to the usual course of things from the breach The party in breach is only liable for losses that were within the reasonable contemplation of the parties at the time the contract was made

Circumstances where damages may be claimed

Expectation losses Personal injuries Disappointment, distress, discomfort?

Specific Performance
Court order requiring one party to carry out his or her contractual obligations Dougan v Ley

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

Rectification of Contract
The court may rectify a contract if there is an error in the contract both parties signed

Restitution
Not a Contractual Remedy
Where the defendant has gained a benefit at the expense of the plaintiff Would be unjust in the circumstances to allow the defendant to retain that benefit the courts will make an order Enables plaintiff to claim a reasonable amount from the defendant for goods or services rendered

Rescission
Act of bringing a contract to an end Parties are restored as far back as possible to the position 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Contracts may be Rescinded for: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)

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

Contract 1 - Alice and Charlies initial contract

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

Contract 2 - Alice and Charlies final contract

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

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

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