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Contract Damages Ii Notes

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This is an extract of our Contract Damages Ii document, which we sell as part of our Contract Notes collection written by the top tier of Griffith University students.

The following is a more accessble plain text extract of the PDF sample above, taken from our Contract Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

CONTRACT

DAMAGES

II:


RELIANCE,

LOSS

AND

AGREED

DAMAGES

*

*

*

*

*

Contract

damages

compensate

the

innocent

party

for

the

losses

they

have


suffered

because

of

the

other

party's

breach


Usually,

these

damages

are

awarded

on

the

basis

of

the

plaintiff's

loss

of


the

expectation

of

performance


Rarely

it

is

not

possible

accurately

to

assess

the

loss

on

the

expectation


measure


The

court

may

then

award

damages

to

compensate

the

plaintiff

for

the


expenses

they

incurred

in

reliance

on

the

defendants

contractual

promise


o McRae

v

Commonwealth

Disposals

Commission


o Commonwealth

v

Amann

Aviation

Pty

Ltd


Damages

are

only

awarded

on

this

basis

if

the

plaintiff

cannot

prove

their


expectation

loss.


Reliance

Loss:

* The

'law

assumes

that

a

plaintiff

would

at

least

have

recovered

his

or

her


expenditure

had

the

contract

been

fully

performed'


o Commonwealth

v

Amann

Aviation

Pty

Ltd

* Reliance

damages

will

not

be

awarded

if

the

defendant

can

show

that

the


plaintiff

would

not

have

recouped

its

expenditure

even

if

the

contract

had


been

fully

performed.

* In

that

case,

the

plaintiff

would

only

be

entitled

to

recover

damages

on

the


expectation

measure.


Damages

for

the

loss

of

a

chance:

* Quantifying

the

loss

of

a

chance:

the

plaintiff

must

prove,

on

the


balance

of

probabilities,

that

it

lost

a

chance

of

something

of

value.

* Damages

are

then

estimated

by

reference

to

a

degree

of

probability,

e.g.


25%.


o Commonwealth

v

Amann

Aviation

Pty

Ltd


Agreed

Damages

and

Penalties

* The

parties

can

agree

the

consequences

of

breach

of

contract,

including


the

liability

of

a

party

for

breach.

* They

may

include

a

agreed

damages

clause

which

provides

that

in

the


event

of

breach,

one

party

must

pay

the

other

party

a

certain

(liquidated)


amount

of

money

.

* Such

an

agreement

is

enforceable

unless

the

amount

specified

is

held

to


be

an

unenforceable

penalty.

* Where

a

provision

is

struck

down

as

a

penalty,

the

plaintiff

can

still


recover

common

law

damages.

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