Compensatory Damages (AQA A-Level Law): Flashcards
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Practise the cards
10 cards from this deck
Primary remedy at common law for breach of contract
Primary remedy at common law for breach of contract
Compensatory damages
Aim of compensatory damages: restorative or punitive?
Aim of compensatory damages: restorative or punitive?
Restorative, not punitive
Liquidated damages
Liquidated damages
Pre-agreed compensation figure specified in contract
Unliquidated damages
Unliquidated damages
No pre-agreed figure; court calculates based on actual loss
Penalty clause
Penalty clause
Sum far exceeding realistic loss; designed to punish; not enforced
Three tests for unliquidated damages
Three tests for unliquidated damages
Causation, remoteness of loss, mitigation
Causation test requirement
Causation test requirement
Breach must be factual cause of loss claimed
Two limbs of Hadley v Baxendale rule
Two limbs of Hadley v Baxendale rule
Natural consequence & contemplation of both parties
Mitigation of loss duty
Mitigation of loss duty
Injured party must take reasonable steps to minimise losses
Burden of proof for failure to mitigate
Burden of proof for failure to mitigate
Defendant must prove claimant failed to mitigate