Which case decided between the two measures for a swimming pool?

Ruxley Electronics and Construction Ltd v Forsyth [1996] concerned a pool built shallower than specified. Rebuilding would have cost about £21,500, which the House of Lords held was wholly disproportionate.

What did the House of Lords award in Ruxley Electronics and Construction Ltd v Forsyth [1996]?

The House of Lords awarded £2,500 for loss of amenity. The pool was still perfectly usable, so neither rebuilding nor a difference in value award was appropriate.

What is loss of amenity?

Loss of amenity compensates for the disappointed expectation of a particular benefit. The award recognises a real loss that no reduction in market value reflects.

When will a court award the cost of cure despite its expense?

Radford v De Froberville [1977] awarded the cost of building a wall the defendant had promised. The claimant genuinely intended to carry out the work.

Eduqas A-Level Law A150QS

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Contract: RemediesContract

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Contract: Remedies

Cost of cure, difference in value and loss of amenity

3 things to know
Components 2 and 3

Overview

Cost of cure measure, difference in value measure and loss of amenity.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

Compare the two measures a court may use to assess damages for defective work.

Key term

What is the cost of cure measure?

Key term

What is the difference in value measure?

Questions from this subtopic

Each one with the model answer underneath.

1
What is the cost of cure measure?
Model answer
The cost of cure measure awards the sum needed to put the defective work right. The measure suits a claimant who genuinely intends to have the work redone.
2
What is the difference in value measure?
Model answer
The difference in value measure awards the reduction in the value of what was received. The measure suits a case where rebuilding would be out of all proportion.
3
Which case decided between the two measures for a swimming pool?
Model answer
Ruxley Electronics and Construction Ltd v Forsyth [1996] concerned a pool built shallower than specified. Rebuilding would have cost about £21,500, which the House of Lords held was wholly disproportionate.
4
What did the House of Lords award in Ruxley Electronics and Construction Ltd v Forsyth [1996]?
Model answer
The House of Lords awarded £2,500 for loss of amenity. The pool was still perfectly usable, so neither rebuilding nor a difference in value award was appropriate.
5
What is loss of amenity?
Model answer
Loss of amenity compensates for the disappointed expectation of a particular benefit. The award recognises a real loss that no reduction in market value reflects.
6
When will a court award the cost of cure despite its expense?
Model answer
Radford v De Froberville [1977] awarded the cost of building a wall the defendant had promised. The claimant genuinely intended to carry out the work.

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