DEFECTIVE PERFORMANCE PDF

Preview

Summary

Directed by Claudio Pulisciano...

Description

OneNote

15/04/2021, 16*19

LECTURE 18: DEFECTIVE PERFORMANCE 13 March 2018 10:55

DEFECTIVE PERFORMANCE Defective performance can give rise to several different ways of calculating damages, but essentially there are two ways in which such damages can be calculated: difference in value, where the expectation damages are calculated by reference to the difference between the value of the promised performance and the value of the defective performance received, or cost of repair or cure (sometimes called reinstatement damages), where the assessment of expectation damages is by reference to cost to the claimant of remedial action to secure promised performance or its equivalent value (i.e the cost to the claimant if putting right the breach and attaining the promised standard of performance stipulated in the contract). Problems arise where the cost of repair is significantly higher than the difference in value. The claimant may be denied the cost of repair if such cost is significantly higher than the difference in value. In such a case, is the claimant limited to difference in value damages if these are lower? In general the claimant is entitled to the cost of repair if his expenditure is justified, reasonable and likely to be incurred. Radford v. De Froberville [1978] 1 All E.R. 33 If the cost of repair is disproportionate to the difference in value the claimant may be limited to the difference in value, notwithstanding the defendant’s breach of contract. Tito v. Waddell (No. 2) [1977] Ch. 106, 328 – 338 Ruxley Electronics & Construction Ltd. v. Forsyth [1996] A.C. 344 (H.L.) The Ruxley case, and the problem which it addresses, has generated a great deal of comment in the academic literature. Friedman, Performance Interest in Contract Damages, (1995) 111 L.Q.R. 628 Coote, Contract Damages, Ruxley and the Performance Interest, (1997) 56 C.L.J. 537 Poole, Damages for Breach of Contract – Compensation and ‘Personal Preference’, (1996) 59 M.L.R. 272 Harris, Ogus and Phillips, Contract Remedies and the Consumer Surplus, (1979) 95 L.Q.R. 581

https://onenote.officeapps.live.com/o/onenoteframe.aspx?ui=en-GB…fa4-6b5eb09b6655&sftc=1&wdredirectionreason=Force_SingleStepBoot

Page 1 of 1...