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REMEDIES FOR BREACH OF CONTRACT - DAMAGES: A SIMPLE EXAMPLE.

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REMEDIES FOR BREACH OF CONTRACT - DAMAGES: A SIMPLE EXAMPLE.

Hello, long time. For who are taking the ILEC course and are going through a rather dense unit: REMEDIES for BREACH OF CONTRACT, let me share this simple example, from INTERNATIONAL LEGAL ENGLISH, Book for Teachers.

The many types of remedies may be illustrated through a simplistic example:
A supplier agrees to supply a ton of concrete mix to a builder in exchange for USD100, so that he builder can use it to build an office for a client. The supplier delivers the concrete mix, but it has become damp and turned to solid concrete. The builder is then unable to start work on building the office for two weeks while he is waiting for new concrete mix.

 

The builder takes the supplier to court, seeking recovery of the USD100 for the faulty concrete mix (general or actual damages =the natural result of the breach), as well as USD 2,000 for the cost of the two-week delay (special or consequential damages). The USD2,000 is subject to the forseeability rule: the court must ascertain whether the supplier could have foreseen the breach (and therefore made alternative preparations, such as keeping a spare ton of concrete mix in stock for emergencies). In addition of these two weeks of expectation damages (=attempts to compensate the non-breaching party for loss of the benefits it would have received if the contract had been performed), the builder might seek punitive damages of USD2,000,000 to punish the supplier for its reprehensible actions (e.g. fraud), but this would be unlikely to succeed. He might also seek a court order for specific performance: removing the ton of solid concrete from the builder's yard.

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