15 Remedies
Clearly, if a problem arises with a contract a remedy is needed for the
innocent party. We have seen some remedies in operation throughout this
book, when considering aspects of the law of contract, such as remedies for
misrepresentation.
The usual remedy for a party to seek as a result of a breach of contract
is damages, and this may be claimed as a right at common law. There are
instances, however, when this does not provide a reasonable solution, so
repudiation (ending the contract) is allowed in some circumstances, and
alternative remedies are available, many based in equity, to suit the needs
of the situations which arise.
Repudiation is where a contract is brought to an end. If goods have been
bought they are usually returned and money is handed back. This is only
possible if a breach is of a condition, rather than a warranty, or if breach of
an innominate term is treated as a breach of condition under the Hong Kong
Fir approach (see Chapter 7 on types of terms).
Damages
Damages is the word used in law for money obtained as compensation.
Damages can be:
- liquidated, where the amount awarded has been decided by the parties,
as a genuine pre-estimate - unliquidated, where no fixed amount has been decided, and the court
makes an assessment.
Under what circumstances might a party want to repudiate rather than claim
damages?