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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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