Business Law - Examine, with Reference to Relevant Case Law, the Extent to Which It Is True to Say That in the Event of a Breach of Contract the Injured Party Can Recover Compensation for All of the Consequences, Both
1. Examine, with reference to relevant case law, the extent to which it is true to say that in the event of a breach of contract the injured party can recover compensation for all of the consequences, both financial and non-financial, that result from the breach. The following question asks us to what extent it is right to say that in the event of breach of contract the injured party can recover compensation for all of the consequences, both financial and non-financial. In this essay, I will thoroughly explain what breach of contract is, and then answer the topic question. I will back up my answer by applying it to relevant case laws.
A contract is a legally enforceable agreement between two or more parties with mutual obligations. A contract has not been performed until both parties have carried out all of their obligations. If one of the parties does not fulfil its contractual duty, it will result in a breach of contract. The remedy at law for breach of contract is compensation for any damages that were incurred as a result of the breach, and that includes both financial and non-financial losses caused to the injured party (Shavell, 1980). However, to what extent it is true to say that the injured party can recover financial, and non financial losses? To answer this question I will explain the possible remedies in regards to the breach of contract, when it comes to damages and recovering compensation.
The major remedy available where it comes to claiming compensation are damages. That includes both financial and non-financial losses. Damages are set by the court to compensate the injured party. And in order to recover any compensation for the damages the injured party must show the he/she suffered a loss. The court has two major concerns to consider, which are remoteness of damage and measure of damages.
Remoteness of loss was established in a case Hadley v Baxendale (1854), and it was said that where one party breaks the rules of the
A contract is a legally enforceable agreement between two or more parties with mutual obligations. A contract has not been performed until both parties have carried out all of their obligations. If one of the parties does not fulfil its contractual duty, it will result in a breach of contract. The remedy at law for breach of contract is compensation for any damages that were incurred as a result of the breach, and that includes both financial and non-financial losses caused to the injured party (Shavell, 1980). However, to what extent it is true to say that the injured party can recover financial, and non financial losses? To answer this question I will explain the possible remedies in regards to the breach of contract, when it comes to damages and recovering compensation.
The major remedy available where it comes to claiming compensation are damages. That includes both financial and non-financial losses. Damages are set by the court to compensate the injured party. And in order to recover any compensation for the damages the injured party must show the he/she suffered a loss. The court has two major concerns to consider, which are remoteness of damage and measure of damages.
Remoteness of loss was established in a case Hadley v Baxendale (1854), and it was said that where one party breaks the rules of the