Remedies

Liquidated Damages v Penalty The parties to a contract may pre-agree the level of damages or compensation, payable in the event of a breach.  Pre-agreed damages are described as liquidated damages.  It is a basic principle that pre-agreed liquidated damages must not amount to a penalty.… Read the rest

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Overview of Mitigation A party must take reasonable steps to mitigate his loss arising from the other party’s wrong or breach of contract. He may not recover damages for a loss which he suffers, which he could have avoided by taking reasonable action.… Read the rest

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Causation and Remoteness The key principle of the law of damages /compensation is that the claimant should be put into the position in which he would have been, but for the breach in so far as money can so do. … Read the rest

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Overview of Mitigation A party must take reasonable steps to mitigate his loss arising from the other party’s wrong or breach of contract. He may not recover damages for a loss which he suffers, which he could have avoided by taking reasonable action.… Read the rest

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The Law Upholds Bargains An award of damages is the primary remedy for breach of contract. The basic principle of contract damages, is that a person who suffers loss by reason of a breach of contract, is entitled to compensation in money, in so far as money can do so, to place him in the same position and situation in which he would have been, if the contract had been performed and the breach had not occurred.… Read the rest

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