23. Damages

This chapter examines the entitlement of a claimant to recover damages in respect of a breach of contract committed by the defendant, and is organized as follows. Section 2 discusses the different measures of damages that can be awarded, while Section 3 analyses the performance interest. Section 4 examines the circumstances in which a claimant can seek damages based on his ‘reliance’ losses rather than his performance interest, while Section 5 discusses the circumstances in which damages may be awarded to protect the claimant’s ‘restitution’ interest. Section 6 examines the entitlement of a claimant to recover damages in respect of non-pecuniary losses, particularly ‘mental distress’. Section 7 considers the general rule that damages are assessed as at the date of breach and the exceptions to that rule, while Section 8 considers the various doctrines which the courts use in order to keep liability within acceptable bounds. These include remoteness, mitigation, and contributory negligence. Section 9 examines the circumstances in which a claimant can recover what is known as ‘negotiating damages’ or the defendant can be ordered to account to a claimant for the profits that he has made from his breach of contract. Section 10 looks at the possibility that exemplary damages might play a role in breach of contract cases. The chapter concludes, in Sections 11 and 12, with a discussion of agreed damages clauses (and related clauses) and their legal regulation.