Business Law - Remedies

CONTRACT – REMEDIES (Pg 183)

Damages

|Damages is the principal common law remedy for a breach of contract. It refers to the monetary compensation payable by the defaulting party. |
|Assessment |Aim of unliquidated damages |
| |The general principle of assessment is that the injured party is to be placed in the same financial position he would be in if the |
| |contract had been properly performed. The award of damages is calculated on the benefit which would accrue to the injured party and not |
| |on the cost of performing the obligation by the defaulting party. |
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| |Expectation Loss (loss of profit) and Reliance Loss (wasted expenditure) |
| |Anglia Television Ltd v Reed (1970) – The court held that Anglia Television was entitled to recover damages regardless of whether the |
| |expenditure (reliance loss) was incurred before or after the contract was entered into with Reed. Cullinane v British “Rema” |
| |Manufacturing Co Ltd (1954) – case of double recovery rejected. Court held that Cullinane could only claim one of them. |
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| |Hong Fok Realty Pte Ltd v Bima Investment Pte Ltd (1993) – can either sue for the bargain, (price between the market value and the |
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