The Law Upholds Bargains An award of damages is the primary remedy for breach of contract. The basic principle of contract damages, is that a person who suffers loss by reason of a breach of contract, is entitled to compensation in money, in so far as money can do so, to place him in the […]
Causation and Remoteness The key principle of the law of damages /compensation is that the claimant should be put into the position in which he would have been, but for the breach in so far as money can so do. This is limited by the requirement for causation and the principles of remoteness. Causation covers causation […]
Overview of Mitigation A party must take reasonable steps to mitigate his loss arising from the other party’s wrong or breach of contract. He may not recover damages for a loss which he suffers, which he could have avoided by taking reasonable action. A person who has suffered a breach of contract, cannot delay and […]
Liquidated Damages v Penalty The parties to a contract may pre-agree the level of damages or compensation, payable in the event of a breach. Pre-agreed damages are described as liquidated damages. It is a basic principle that pre-agreed liquidated damages must not amount to a penalty. They must compensate only and may not be pitched […]
General The law on damages is almost entirely judge made. There is very little statutory law which is of relevance. Accordingly, the principles are found in various cases. The principles on which damages are assessed and awarded have evolved over time. In civil claims, damages which are monetary compensation for loss or injury are the […]
Damages not usually awarded for Mental Distress As a general principle, a person breaking a contract is not liable for the distress, frustration, anxiety, tension, displeasure or aggravation which the breach causes. However, damages for mental distress have been allowed in certain categories of case such as where leisure services are provided, as in the […]