ACCA LW · Chapter 4 · Question 10 of 10
Which of the following statements about damages for breach of contract is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Damages may be awarded for mental distress where the purpose of the contract was to provide pleasure or relaxation, as in Jarvis v Swans Tours
Explanation
The general aim of contract damages is to put the claimant in the position they would have been in had the contract been performed (expectation loss); reliance loss is an alternative in some cases. Distress damages are exceptionally available for contracts aimed at pleasure, such as holidays (Jarvis v Swans Tours). Loss of a chance can be compensated (Chaplin v Hicks), and punitive damages are not awarded for breach of contract.
More Breach of contract and remedies MCQs
- Q2Under the first limb of the rule in Hadley v Baxendale, which losses are recoverable for breach of contract?
- Q3A laundry company bought a boiler that was delivered five months late. The seller knew the laundry needed it urgently but did not know of…
- Q4A contract states that if the builder finishes late it will pay 2,000 per week of delay. The amount was set after considering the client's…
- Q5Which of the following best describes the innocent party's duty to mitigate loss after a breach of contract?
- Q6In which situation is a court most likely to order specific performance?