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ASSESSMENT OF DAMAGES IN BREACH OF CONTRACT

Dictum

[A]s far back as 1854 in the case of Hadley v. Baxendale (1854) 9 Ex (Ch. 341, where at p. 354 of the Report, Alderson, B. expressed the law as follows: “Now we think the proper rule in such a case as the present is this: Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such a breach of contract should be such as may fairly and reasonably be considered either arising naturally, according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as the probable result of the breach of it.”

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TRESPASS: SPECIAL VS GENERAL DAMAGES

In an action for damages for special damages for trespass, special dam-ages must be pleaded and strictly proved, the value pleaded being normally a reflection of the prevailing market prices. The vital difference between a claim for compensation under the Land Use Act and compensation in trespass Is that general damages is only claimable in...

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DAMAGES IN BUILDING CONTRACT

In Mertens v. Home Freeholds Company (1921),2 K.B. 526, where the Court approved the law on this point as stated in an earlier edition of Hudson. In that case the contractor had undertaken to build to the roofing and the Court held:- The proper measure of damages was what it cost the plaintiff to complete the house substantially as it was originally intended and in a reasonable manner at the earliest moment he was allowed to proceed with the work, less any amount which would have been due and payable by the defendant to the plaintiff, had the defendant completed the house to the roofing at the time agreed by the terms of the contract.

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INSTANCES WHEN APPEAL COURT WILL INTERFERE WITH DAMAGES GRANTED BY TRIAL COURT

The appellant’s learned senior counsel had submitted that it had shown reasons for this Court to interfere with the award of damages. An appellate Court does not usually interfere with award of damages unless: (a) the trial Court acted under a mistake of law; or (b) where the trial Court acted in disregard of some...

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RATIONALE FOR DAMAGES AWARD

The primary object of an award of damages is to compensate the plaintiff for the harm done to him or a possible secondary object is to punish the defendant for his conduct in inflicting that harm. The rationale behind the compensatory theory for the award of damages is found in the maxim restitutio in integrum....

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WHEN APPELLATE COURT WILL INTERFERE IN DAMAGES AWARDED

An award of damages is within the discretionary powers of the court. An appellate court would not usually interfere with a previous award unless satisfied (a) that the trial court acted under a mistake of law; or (b) where the trial court acted in disregard of some principle of law; or (c) where it acted...

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