The general objective with respect to the remedy of damages for breach of contract is:Loss must be caused by the damagesDamages are to place the innocent party in the same position they would have been if the contract had been performedThere is a duty to mitigate lossDamages must not be too remote
Question
The general objective with respect to the remedy of damages for breach of contract is:Loss must be caused by the damagesDamages are to place the innocent party in the same position they would have been if the contract had been performedThere is a duty to mitigate lossDamages must not be too remote
Solution
The general objective with respect to the remedy of damages for breach of contract is to compensate the innocent party for the loss they have suffered as a result of the other party's breach. Here are the steps to understand this:
-
Loss must be caused by the damages: This means that the damages claimed must be directly caused by the breach of contract. The innocent party must be able to prove that the loss they suffered was a direct result of the other party's failure to fulfill their contractual obligations.
-
Damages are to place the innocent party in the same position they would have been if the contract had been performed: This is the fundamental principle of damages in contract law. The aim is not to punish the party in breach, but to put the innocent party in the position they would have been in had the contract been properly performed.
-
There is a duty to mitigate loss: This means that the innocent party has a responsibility to take reasonable steps to minimize the loss they suffer as a result of the breach. They cannot simply allow their losses to accumulate and then claim for the full amount from the party in breach.
-
Damages must not be too remote: This means that the damages claimed must be a foreseeable consequence of the breach. If the loss suffered is too far removed from the breach of contract, then the innocent party may not be able to claim for those damages. This is known as the rule in Hadley v Baxendale.
Similar Questions
Which of the following is NOT a remedy for a breach of contract?*A) Specific performanceB) Liquidated damagesC) RescissionD) Exemplary damages
Damages which are in contemplated of both the parties at the time of contract are called*DemurrageLiquidated damagesSpecial damagesVindictive damages
What type of damages are specified in the contract?
Negligence in contracts resulting in their breach
What are money damages covering economic losses or losses stemming from injuries known as?Question 3Answera.Punitive damageb.Consequential damagesc.Compensatory damagesd.Comparative damages
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.