Principles Of Remedies Of Contract

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Remedies of contract define as the innocent party claim any one or more of remedies from another party for the breach of contract. 1. Damages Damages is a remedy for the innocent party claim for the breach of the contract in common law. Damages are granted to an aggrieved party as a compensation for the damages, loss or injury that the party has suffered through a breach of contract. A breach of contract allows the innocent party to acquire damages The purpose of damages is to enable the innocent party to receive pecuniary compensation from the party responsible for the breach of contract and it is mandatory to compensate the damages. There are four principles to consider that how much the damages should be awarded: I. Damages must not be…show more content…
Hadley v Baxendale The plaintiff, flour owners, sent a broken crank-shaft to the defendant, a delivery company, to deliver to the engineers to be repaired. The delivery was delayed. The mill stopped for five days longer causing a loss of profits. The court held that the defendant is not liable for the loss of profits. He was only a carrier who did not know the mill will be stopped. The plaintiff’s loss of profit was not within the contemplation of the defendant. Victoria Laundry v Newman Industries The claimant purchased a large boiler for their dying and laundry business. The defendant knew that they wished to use immediately and knew the nature of their business. However, the delivery of the boiler was delayed in breach of contract and the claimants brought an action for the loss of profit which the boiler would have made during the period in which the delivery was delayed. The claim is included a sum for a particularly lucrative contract which they lost due to the absence of the boiler. The court held that business profits was recoverable as damages, but the seller did not know that buyer will sell it to third party and it was…show more content…
Section 76 CA 1950 states a person who rightfully rescinds a contract is entitled to compensation for any damage which he has sustained through the non-fulfillment of the contract. Mitigation of damages means that claimant must try to lessen the damages suffered because of the breach of contract, the plaintiff does not take the elaborate step to mitigate. Kebatasan Timber Extraction Co. v Chong Fah Shing Here was a breach of contract between two parties that the supplier has to delivered the log at the site of mill. However, the supplier did not deliver and the log are dumped at a distance more than 500ft from the mill. The learned trial judge gave the judgement that the claimant could claim for the breach of contract for the sum of RM13192.40. The federal court held that it was duty of innocent party to take a reasonable step to mitigate the loss. Hence, the remedy of contract to the claimant will be reduce accordingly. There are four types of damages I. Substantial

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