a)Discuss both liquidated and unliquidated damages.
Where a party fails to perform their obligations as agreed,they are in breach of contract. Remedy is the method by which an injured party enforces a right or corrects a loss.One of many remedies is Damages.Its chief goal is to enable the innocent party to receive monetary compensation from the party liable for the breach of contract . Damages are not awarded to penalize an offender, but rather to put the injured party back in the place that they would have occupied if the contract had been performed as originally intended.Damages may be liquidated or unliquidated .
Liquidated damages is a compensation made to the party complaining of the breach of contract. It is stated in Section 75 of…show more content… It arises where one party, prior to the due date of performance, demonstrates expressly or impliedly, an intention not to perform their contractual obligations.
Smith has now two options. He can sue Steve for damages right away, as in the case of Hochster V De La Tour (1853) . The court in that case held that when one party communicates their desire not to perform the contract, the innocent party does not need to wait until the breach has occurred before bringing their claim. They may sue immediately or they can choose to continue with the contract and wait for the breach to occur.. The Court awarded damages to Hochster.
Alternatively , Smith can wait until the actual time for performance before taking action, thus giving Steve a opportunity to perform. For this they are entitled to make preparation for performance and claim for actual breach if Steve fails to perform on the due date,even though this apparently conflicts with the duty to mitigate