What is the primary remedy for breach of contract, and what is its fundamental purpose?

Compensatory damages are the primary remedy, designed to put the claimant in the position they would have been in had the contract been performed correctly.

What does reliance loss compensate a claimant for?

Reliance loss compensates for expenses incurred in reliance on the contract that have been wasted due to the breach.

What must a claimant prove regarding causation to recover damages for breach of contract?

The claimant must prove that the defendant's breach actually caused the loss suffered.

How does the principle of remoteness limit the damages recoverable for breach of contract?

Remoteness limits recoverable damages to losses that were reasonably foreseeable at the time the contract was made.

Which case established the test for remoteness of damage in contract law?

Hadley v Baxendale established the test for remoteness in contract.

AQA A-Level Law 7162

The Nature of Law

Topic overview Distributive and Corrective Justice Theories of Justice: Rawls, Nozick and Marx What Law Does in Society How Law and Morality Are Enforced Moral Diversity in a Pluralist Society The Hart-Devlin Debate Procedural Justice and Utilitarianism The Rule of Law: Core Requirements Law, Rights and the Resolution of Disputes Fault and Strict Liability Where Law and Morality Overlap Wolfenden and R v Brown Aristotle on Justice Justice through Civil and Criminal Law Criminal and civil law compared Custom, statute and common law as sources Equality, Fairness and Clarity before the Law

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Vitiating FactorsContract

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Discharge of a ContractContract

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Contract: RemediesContract

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Human Rights and English LawHuman rights

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Contract: Remedies

Damages, Specific Performance and Rescission

4 things to know
Paper 3

Overview

Recall questions on damages and their purpose, expectation and reliance loss, causation, remoteness under Hadley v Baxendale, mitigation, specific performance and when it is refused, and rescission and its bars.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

Define expectation loss in the context of contractual damages.

Key term

Under the first limb of Hadley v Baxendale, what type of losses are recoverable?

Key term

For what types of contracts is specific performance commonly awarded?

Process

What does reliance loss cover, what must causation show, and what does remoteness limit?

Questions from this subtopic

Each one with the model answer underneath.

1
What is the primary remedy for breach of contract, and what is its fundamental purpose?
Model answer
Compensatory damages are the primary remedy, designed to put the claimant in the position they would have been in had the contract been performed correctly.
2
Define expectation loss in the context of contractual damages.
Model answer
Expectation loss (also called loss of bargain) compensates for what the claimant expected to gain from the contract being performed.
3
What does reliance loss compensate a claimant for?
Model answer
Reliance loss compensates for expenses incurred in reliance on the contract that have been wasted due to the breach.
4
What must a claimant prove regarding causation to recover damages for breach of contract?
Model answer
The claimant must prove that the defendant's breach actually caused the loss suffered.
5
How does the principle of remoteness limit the damages recoverable for breach of contract?
Model answer
Remoteness limits recoverable damages to losses that were reasonably foreseeable at the time the contract was made.
6
Which case established the test for remoteness of damage in contract law?
Model answer
Hadley v Baxendale established the test for remoteness in contract.

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