Damages and breach of contract
Damages and Breach of Contract
This paper aims to discuss and examine the case law, Wrotham Park Estate Co Ltd v Parkside Homes Ltd. and analyse the reasons why Brightman J in this case believe that there will be unjust if the nominal sum is awarded to the plaintiffs. The measure of damages (restitution interest/remedy(remedy Campbell,restitution for breach of contract) and damages in lieu of injunction will also be explained. Furthermore, the relevant case laws will be included.
Before considering the decision of Brightman J in the Wrotham Park Estate Co Ltd v Parkside Homes Ltd case, the remedies available for breaches of contract will be analysed. A breach of contract gives rise to an action for damages. There are three different measures of damages that can be recovered on a breach of contract. First, the contract law might protect ‘the expectation interest'. Secondly, the interest protected is ‘the reliance interest'. Thirdly, ‘the restitution interest' is protected. However, the reliance interest will not be explored in this paper.
The claimant's expectation interest is commonly protected by an award of damages for breach of contract. The award of damages aims to compensate the claimant's loss which he has derived as a result of the defendant's breach of contract. Parke B stated this principle in Robinson v Harmanthat the claimant who suffers a loss as a result of a breach of contract ‘….is, so far as money can do it, to be placed in the same situation, with respect to damages, as if the contract had been performed.' The expectation interest concentrates on the claimant's loss. The claimant will not be awarded damages more than his actual loss. Where the claimant suffers no loss, the damages awarded will (,in,most,circumstances,)be nominal. This situation can be seen in Surrey County Council v Bredero Homes Ltd. In this case, the defendants purchased a land from the plaintiffs, the councils, for a housing estate development. The defendants covenanted with
This paper aims to discuss and examine the case law, Wrotham Park Estate Co Ltd v Parkside Homes Ltd. and analyse the reasons why Brightman J in this case believe that there will be unjust if the nominal sum is awarded to the plaintiffs. The measure of damages (restitution interest/remedy(remedy Campbell,restitution for breach of contract) and damages in lieu of injunction will also be explained. Furthermore, the relevant case laws will be included.
Before considering the decision of Brightman J in the Wrotham Park Estate Co Ltd v Parkside Homes Ltd case, the remedies available for breaches of contract will be analysed. A breach of contract gives rise to an action for damages. There are three different measures of damages that can be recovered on a breach of contract. First, the contract law might protect ‘the expectation interest'. Secondly, the interest protected is ‘the reliance interest'. Thirdly, ‘the restitution interest' is protected. However, the reliance interest will not be explored in this paper.
The claimant's expectation interest is commonly protected by an award of damages for breach of contract. The award of damages aims to compensate the claimant's loss which he has derived as a result of the defendant's breach of contract. Parke B stated this principle in Robinson v Harmanthat the claimant who suffers a loss as a result of a breach of contract ‘….is, so far as money can do it, to be placed in the same situation, with respect to damages, as if the contract had been performed.' The expectation interest concentrates on the claimant's loss. The claimant will not be awarded damages more than his actual loss. Where the claimant suffers no loss, the damages awarded will (,in,most,circumstances,)be nominal. This situation can be seen in Surrey County Council v Bredero Homes Ltd. In this case, the defendants purchased a land from the plaintiffs, the councils, for a housing estate development. The defendants covenanted with