Overheads, Week 4

Lecture 7

Introduction to contract damages

Damages only one way to enforce expectations. Promissory notes and specific performance can do the same, less efficiently.

Expectation damages the foundation of modern capitalism; incorporate laissez faire values.

Charles Dickens, Hard Times (Gradgrind was a major character in the novel) image

Macarthur v Thompson 1806.

Contracts review legislation based on fair contracts, not fair outcomes.

[Waltons v Maher]

Macarthur v Thompson

Butler v Fairclough (TNK 203)

Richard Crasswell, "Against Fuller and Perdue" (2000) 67 Chicago Law Review 99-161

[Commonwealth v Amann Aviation (TNK 214)]

Park v Kenny (TNK 209) - expectation damages

McRae v Commonwealth Disposals Commission (TNK 243) - reliance damages

Commonwealth v Amann Aviation (TNK 214) The only purpose of contract damages is to put the plaintiff in the position as if the contract had been performed.

[Anglia TV v Reed (TNK 214)]

[Hadley v Baxendale (TNK 351)] - the remoteness test in contract

[Cullinane v British Rema (TNK 229)]

TC Industrial Plant v Reed (TNK 229) can get gross profits OR net profits plus expenses: the two are the same thing

Tutorial coverage

This week: TNK 195-258

Next week: TNK 259-332

Lecture 8

Rules specific to contract damages (TNK 230-258)

Date of assessment - no strict rule now

Johnson v Agnew (TNK 230)

Johnson v Perez (TNK 230)

White and Carter Councils v McGregor (TNK 380) - no obligation to mitigate when there is merely an anticipatory breach of contract

Discretionary benefits rule

Lavarack v Woods of Colchester (TNK 231)

TCN 9 v Hayden (TNK 236) - the cut off a nose to spite a face rule…

Commonwealth v Amann Aviation (TNK 214, 297)

Betterment/Compensation principle

Harbutt's Plasticine v Wayne Tank (TNK 242)

Peevyhouse (TNK 242)

Ocean Island case (Tito v Waddell (TNK 611, 614,