BLAW10001 Chapter Notes - Chapter 8: Specific Performance, Liquidated Damages
15 May 2018
School
Department
Course
Professor
Principles of Business Law
• Tutorial 8
• Week 7
• Remedies for a Breach of Contract
• Selecting an available remedy
• Often a dispute can be resolved by negotiation and compromise
• Remedies include;
o A claim for damages to compensate for loss suffered as a result of the breach
o The right to reject the faulty performance and put a stop to further
performance
o An order of specific performance
o An injunction to stop a continuing breach
• Orders of specific performance
• Specific performance a discretionary remedy
• A court will only order a person to actually carry out their contractual obligations if
an award of damages is not an adequate remedy in the circumstances
• Obligations involving personal services
• Courts will not order specific performance of such agreements
o Depend on goodwill of the performer, and if performance were ordered, it
might be carried out badly, leading to further disputes
• Performance that requires supervision for an extended period
• Courts will not order specific performance if the contract involves ongoing
performance by both parties over an extended period and there is no guarantee that
both parties will perform as required without the court being involved in ongoing
supervision
• Availability of alternative relief
• Performance that causes hardships
• Courts will not order specific performance that may result in hardship to the
defaulting party or injustice
• Prioritised fairness about the strict application of legal rules
• An award of damages
• Monetary compensation for loss
• Damages
o A sum of money paid to compensate someone for a loss they have suffered
o Occurs when there is a breach of contract
• The availability of damages as a remedy
• Damages compensate for recognisable loss
o Not awarded to punish a breach
• Distinguishing estimated loss and agreed penalties
• If a contract state that a specific sum of money will be payable as a penalty for a
breach of contract, the courts will not enforce payment of that agreed sum
o Courts will not enforce penalty clauses in contracts
• Pealties ust e distiguished fo liuidated daages
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