Overview

Damages are available following a breach of contract as a matter of right.

The other common law remedies that may be available following contractual breach are for debt or liquidated damages.

General rules

Damages for breach of contract are viewed as a 'substitute' for performance - consequently, they are designed to put the plaintiff in the position they would have been in had the contract been performed properly. Punitive damages are not available. This does not mean that it must be possible to calculate loss with absolute precision.

Damages are available for mental distress in some circumstances: see Baltic Shipping

Remoteness

The loss claimed must not be too remote from the breach.

Mitigation

The non-breaching party must do what is reasonable to reduce (mitigate) the damage they suffer. Failure to do so may result in a reduction of damages payable.

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Last updated: 18 October 2019