Deck 25: Compensatory Damages

Question 1

Which of the following options accurately encapsulates the 'compensatory principle' in the law of contract?

A) The idea that people who suffer losses should receive compensation.
B) The idea that losses are best compensated by monetary damages.
C) The idea that damages should put an injured party in the position he would be in had the contract not been breached.
D) None of the options provided is correct.

Answer 1

C

Question 2

Jessica, in breach of contract, refuses to accept and pay Darren for a quantity of potatoes she had ordered for £500. The same quantity of potatoes would fetch £700 at the farmers' market Darren frequents. Which of the following options is Darren most likely to recover as damages?

A) £5
B) £200
C) £700
D) £500

Answer 2

A

Question 3

Which of the following types of loss are recoverable under the classic remoteness rule set out in Hadley v Baxendale? Please select all that apply.

A) Losses arising naturally
B) Losses which may reasonably be supposed to have been in the contemplation of the contracting parties at the time the contract was made
C) Losses arising by accident
D) Unforeseeable losses

Answer 3

A,B

Question 4

A defendant is only liable for losses the type and quantum of which he should have foreseen.

Question 5

How did The Achilleas develop the law on remoteness?

A) It provided the law on remoteness with a new basis founded on assumption of responsibility.
B) It overturned Hadley v Baxendale.
C) It collapsed the two limbs of the Hadley v Baxendale rule into one test.
D) None of the options provided is correct.

Question 6

An injured party who fails to act reasonably to mitigate his losses cannot sue for damages.

Question 7

English contract law does not allow substantial damages to be awarded for loss of a chance.