. CONTRACT AND TORT LAW

Available Remedies in Contract and Tort Law

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Introduction to Law

Answer no. 1

Damages are a very effective and good remedy in the cases of breach of contract. The courts award damages to the suffered party such that the suffered party is made whole as if the breach of contract did not occur or that the contract that has been breached was never entered into by the parties.

The damages which are awarded by courts in cases of the breach of contract include unliquidated and liquidated damages. The unliquidated damages are granted by the courts and put the innocent party in a position to recover losses that have been sustained due to the breach of contract. However, if the party has not suffered any material losses then only nominal damages will be awarded. In addition, the courts will not provide the innocent party with any benefits that the defendant has made as a result of the breach of contract. Furthermore, if the innocent party has made any benefit from the contract then the court will offset that benefit from the grant of damages to the claimant in respect of the losses suffered.

The courts will provide damages to the claimant for the loss suffered as a result of the breach of contract. However, if the claimant has suffered any loss of property or as a result of devaluation of the property then the defendant will be compensated for those as well.

These expectation losses are granted on the basis of two tests. The first test is the cost of cure while the other test is the difference in value. The courts will here assess the impact of the performance, the impact of the claimant's attempts to mitigate their losses, and the likelihood of the performance of the cure. The cost of cure is awarded to finish the unfinished business as in the case of Radford v DeFroberville (1977). On the other hand, the difference in value will recompense for the loss of value of the property. However, the expectation losses are not recompensed if there is remoteness of damage as when the claimant's losses are too remote and if it was not possible to know those losses beforehand with the level of knowledge at the time of entering of the contract.

In addition, the claimants are mostly awarded pecuniary losses that they have suffered. However, in certain cases they will also be provided damages for pain or other suffering, physical inconvenience, damage to corporate reputation, and for any distress suffered by the claimant. Furthermore, the claimant has the primary responsibility to mitigate their losses rather than ameliorate them. Consequently, any increased losses will not be granted. Finally, the losses must have been the effect of the breach of contract. Additionally, the courts will not award any punitive damages for the breach of the contract.

The other type of loss is the reliance loss which is also known as the waste loss. This loss occurs when the claimant incurs certain out-of-pocket expenses, ...