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  • Read the given passage very carefully and answer the question. The term ‘remoteness of damages’ refers to the legal test used for d

Read the given passage very carefully and answer the question.

The term ‘remoteness of damages’ refers to the legal test used for deciding which type of loss caused by the breach of contract may be compensated by an award of damages. It has been distinguished from the term measure of damages or quantification which refers to the method of assessing in money the compensation for a particular consequence or loss which has been held to be not too remote.

The rules on the remoteness of damage in the contract are found in the Court of Exchequer’s judgment in Hadley v Baxendale, as interpreted in later cases. In Hadley v Baxendale, the plaintiff’s mill had come to a standstill due to its crankshaft breakage. The defendant carrier failed to deliver the broken crankshaft to the manufacturer within the specified time. There has been a delay in restarting the mill. The plaintiff sued to recover the profits they would have made if the mill was started without delay. The court rejected the claim on the ground that the mill’s profits must be stopped by an unreasonable delay in the carrier’s delivery of the broken shaft to the third person. That rule, expressly and carefully framed, to be guided to judges in directing juries, was as follows:

Where two parties have entered into a contract which one of them has broken, the damages which the other party should be entitled to receive in respect of such breach of contract should either be deemed to have arisen naturally, fairly, and reasonably, i.e. according to the usual course of things, from such breach of contract itself or as might reasonably have been deemed to have arisen in the contemplation of the contract. Now, in the particular circumstances under which the contract was actually concluded were communicated by the plaintiff to the defendant and thus known to both parties, the damages resulting from such a breach of contract that they would reasonably contemplate would be the amount of injury that would normally result from a breach of the contract, under these special circumstances were wholly unknown to the party breaking the contract, he could, at most, only have had in his contemplation the amount of injury that would generally arise from such a breach of the contract and in the great multitude of cases not affected by any special circumstances.

Question

The damages obtained under the Law of Torts and Contract law are of the same nature?

 

Option: 1

 Yes, the damages obtained are of similar nature both differ in other aspects but not in matters of damages

 


Option: 2

 No, the damages obtained are not of a similar nature

 


Option: 3

In torts, there are liquidated damages but not in contracts

 


Option: 4

In Contracts, there are unliquidated damages but not in torts

 


Answers (1)

best_answer

 Under torts, the claim is for unliquidated damages, whereas for breach of contract, the suit is filed to seek liquidated damages which are already determined by the parties to the contract while entering into the contract. In torts, the amount of compensation is not predetermined by the parties to the suit, rather, it is at the discretion of the court to assess the amount of harm or loss suffered by the plaintiff and grants the damages accordingly. 

 

Posted by

Kuldeep Maurya

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