Detailed notes (primarily case notes) on the topics of Incorporation of terms and construction, factors vitiating a contract and damages and included are super summaries ideal to take into an open book exam....
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Reliance Damages, General Principles, Loss of Chance, Restitution, Causation, Remoteness
The right to damages
Whenever a party to a contract breaches it, the other party will be entitled to an award of damages as monetary compensation
The compensation principle (as above)
Reliance Damages
Commonwealth v Amann Aviation Pty Ltd (1991) 176 CLR 64 Relevant Facts: On 31/3/87 the two parties entered into a contract under which A was to provide coastal surveillance services for C. On 12/9/87 A commenced flights but it was obvious that they didn’t have all the aircrafts required to perform their obligations nor that they complied with the specifications of the contract. On this date C terminated and 3 days later A treated this as repudiation, elected to terminate and sued for damages for breach. They were awarded 410k at trial but appealed to the FCA who increased it to 6.6m. C appealed to the High Court. The questions on appeal were how to treat A’s prospect of having the contract renewed as well as the expenditures they incurred. These expenditures could not be easily recouped because the market value of the aircraft differed markedly from their cost due to being made for very specific use. Ratio (Deane J): The relevant principles (‘reliance damages’): Where a plaintiff has incurred expenditure but it is impossible or difficult to establish the value of any benefits which the plaintiff would have derived from performance, considerations of justice demand that:
IF repudiation causes unforeseen detriments, these too are recoverable since they would not have been incurred The appeal – The claim for reliance damages
Amann’s loss of an 80% Chance
Order: Appeal dismissed |
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Reliance damages – Where a plaintiff is unable to prove the value of the benefit expected to be gained the courts have held that the plaintiff can instead recover damages compensating the plaintiff for expenditure incurred in reasonable reliance on the contract being performed.
Damages for loss of a chance
Courts have awarded damages compensating a plaintiff for the loss of a chance or opportunity of obtaining a benefit.
Howe v Teefy (1927) 27 SR (NSW) 301 Relevant Facts: H leased a racehorse to T for three years. After three months H removed the horse from the plaintiff without justification. T brought an action for breach of contract, claiming for loss of opportunity to win prizes and to win bets placed by himself on the horse and to make profits supplying information to others. The jury awarded 250, the plaintiff appealed. Ratio (Street CJ):
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Detailed notes (primarily case notes) on the topics of Incorporation of terms and construction, factors vitiating a contract and damages and included are super summaries ideal to take into an open book exam....
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