Damages in Contract Law

Which of the following best represents the aim of damages in contract law?

• The aim is to place the innocent party in the position they would have been in had the contract been properly performed.

• The aim is to place the innocent party in the position they would have been in had the contract never been entered into.

• The aim is to find the fairest outcome for the innocent party.

Damages in contract law are ____________ as opposed to punitive

Calculating damages by looking at what the party predicted to make under the contract is know as___________

• Reliance Loss

• Expectation loss

• Anticipatory Loss

• Equitable Loss

True or False: In Ruxley Electronics & Construction Ltd v Forsyth, the innocent party was unable to claim expectation loss because it would not be reasonable to do so.

• True

• False

Damages paid for losses that can be quantified in monetary terms are known as?

• Pecuniary damage

• Non-pecuniary damages

• Nominal Damages

• Liquidated Damages

Damages awarded when no monetary loss has been incurred, but the court wants to show that the successful party was in the right are known as?

• Pecuniary damage

• Non-pecuniary damages

• Nominal Damages

• Liquidated Damages

True or False: You cannot claim damages for anxiety, distress and disappointment in contract law

• True

• False

There are four factors that can limit a person's ability to recover damages they would otherwise be entitled to for breach of contract. Which of the following places a limit on what you can claim damages for on the basis of forseeability?

• Causation

• Contributory Negligence

• Remoteness

• Mitigation

To satisfy causation in contract law, the breach of contract must be the _______ or dominant cause of the loss.

The claimant can only recover damages in respect of losses that, at the time they entered into the contract, were within the reasonable contemplation of the parties as a ________ ____________ of any breach of contract.