Compensatory Damages (OCR A-Level Law): Flashcards
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Practise the cards
10 cards from this deck
Purpose of compensatory damages
Purpose of compensatory damages
Place injured party where they'd be if contract performed
Two categories of compensatory damages
Two categories of compensatory damages
Liquidated damages and unliquidated damages
Liquidated damages
Liquidated damages
Pre-agreed sum fixed by parties at time of contracting
Penalty clauses
Penalty clauses
Unenforceable clauses that punish rather than compensate
Unliquidated damages
Unliquidated damages
Court-determined amount based on actual loss suffered
Three tests for unliquidated damages (CRM)
Three tests for unliquidated damages (CRM)
Causation, Remoteness, Mitigation
Hadley v Baxendale (1854) test
Hadley v Baxendale (1854) test
Recoverable losses must be reasonably foreseeable
Two limbs of Hadley v Baxendale
Two limbs of Hadley v Baxendale
Losses arising naturally & losses in parties' contemplation
Duty to mitigate
Duty to mitigate
Take reasonable steps to minimise loss from breach
Burden of proof for failure to mitigate
Burden of proof for failure to mitigate
On defendant to prove claimant failed to mitigate reasonably
