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What is the primary purpose of damages in contract law?
To compensate the claimant for loss caused by the breach, putting them in the position as if the contract had been performed
What are the two main measures of pecuniary damages?
Expectation measure and reliance measure.
Describe the 'expectation measure' of damages
Aims to award the claimant the value of the benefit they expected to receive if the contract had been properly performed
Describe the 'reliance measure' of damages
Compensates the claimant for expenses incurred in reliance on the contract, often used when expectation loss is too difficult to predict
What are the three main limitations on damages?
Causation, Remoteness, and Mitigation
Explain the 'causation' limitation on damages
The breach must be the dominant or effective cause of the loss claimed
Explain the 'remoteness' limitation on damages.
The innocent party can only claim for losses that are not too remote a consequence of the breach.
Explain the 'mitigation' limitation on damages
The innocent party has a duty to take reasonable steps to minimize their losses
What is 'specific performance'?
A court order requiring the defendant to perform their contractual obligations
Is specific performance available as of right?
No, it is an equitable remedy and is discretionary
When is specific performance typically NOT awarded?
If damages are an adequate remedy or for contracts to perform personal services
What is an 'injunction' in contract law?
A court order preventing a party from breaching a negative stipulation in a contract
What is 'restitution' in contract law?
A remedy focused on preventing unjust enrichment of the breaching party.
What is 'quantum meruit'?
A reasonable sum for work done or goods supplied.
What is an 'account of profits'?
A remedy that requires the breaching party to give up any profits gained from the breach
In what circumstances is an account of profits typically awarded?
In exceptional circumstances where other remedies are inadequate