Working guide to damages General rule

*
Burrows: entitled to expectation/performance interest o Robinson v Harman [1848]:
? Parke B:

*
Rule of Common Law is that if party suffers loss owing to breach of contract o He is entitled to damages, insofar as money can do it
? To be put into as good a position as if the contract had been performed. o This is different from C's reliance interest.

*
However, the courts will also consider whether it would be reasonable to grant the full expectation interest, such as the cost of repair: o Ruxley Electronics Ltd v Forsyth [1996]:
? Lord Jauncey:

*
X is entitled to recover damage for the cost of repair if o He actually intends to carry out the repair o The repair work is not unreasonable

*
If the cost of remedying the defect is disproportionate to the end to be attained, o the damages will be measured by the diminution in value.
? Lord Mustill

*
If it is unreasonable, should be able to claim loss of amenity - a small amount to reflect the loss of aesthetic pleasure or loss of use.
? Lord Lloyd

*
Reasonableness is the way to decide the measure of damages o If it would be unreasonable to give the cost of repair
? Then the Judge must confine themselves to giving the diminution in value only.

*
Intention also has an impact on whether giving the cost of repair o If D doesn't intend to repair the pool
? Then he ought not to be awarded the cost of repair
- he has lost nothing except and diminution in value. Rules for consequential losses

*
Availability o Natural Consequence
? Hadley v Baxendale

*
Anderson B: o The damages apportioned should be such as may fairly and reasonably be considered arising naturally
? i.e. according to the usual course of things

*
from the breach itself o Reasonable contemplation
? Hadley v Baxendale

*
Anderson B:

Buy the full version of these notes or essay plans and more in our Contract Law Notes.