Remoteness of damage
- Losses are recoverable if they are reasonably within the contemplation of
the parties as a probable result of the breach – Hadley v Baxendale. - Losses for particular losses which are not foreseeable are not recoverable
- Victoria Laundry v Newman.
Mitigation
Reasonable steps should be taken to mitigate loss, but this only need be
reasonable – British Westinghouse Electric and Manufacturing Co Ltd v
Underground Electric Railways Co of London Ltd.
Other remedies
Equitable remedies supplement common law remedies:
- Rescission has already been examined with respect to misrepresentation
(see Chapter 11, p. 179 for more detail). - Specific performance (to enforce fulfilment of an obligation under a
contract). - Injunction (stops a person from acting in breach of contract). May be
long-term or temporary (an interlocutory injunction) until trial. - Stop now orders.
Questions
1 What factors will the courts take into account when awarding damages for breach of a
contract, where there is no provision for this in the contract?
2 Critically compare the award of damages with other remedies which may be available.
232 Contract law