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Discharge of a Contract

Remedies for Breach of Contract

  • 3 things to know
  • Paper 3

Overview

Recall questions on expectation and reliance loss, causation, remoteness and mitigation, specific performance and when it is refused, rescission, termination for breach of a condition or warranty, and the choices after repudiatory breach.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What does the duty to mitigate require of a claimant?

Key term

What is rescission as a contractual remedy?

Process

What do expectation and reliance loss each compensate, and what must be proved about causation?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What are compensatory damages intended to achieve?

    Model answer

    Compensatory damages are monetary awards intended to put the claimant in the position they would have been in had the contract been performed.

  2. 2

    What does expectation loss compensate for?

    Model answer

    Expectation loss compensates for the benefit the claimant expected to receive from performance of the contract.

  3. 3

    What does reliance loss compensate for?

    Model answer

    Reliance loss compensates for expenses incurred by the claimant in reliance on the contract being performed.

  4. 4

    What must a claimant prove to satisfy the requirement of causation in a damages claim?

    Model answer

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

  5. 5

    How does remoteness limit the recovery of damages?

    Model answer

    Remoteness limits recoverable damages to losses that were reasonably foreseeable at the time of contracting.

  6. 6

    What is the test for remoteness of damage in contract law?

    Model answer

    The test is whether the loss arose naturally from the breach or was in the reasonable contemplation of the parties at the time of contracting.

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