Wednesday, March 25, 2009

Contract - damages

Even if you cannot prove a direct financial loss for the other party's breach of contract, you may be able to claim damages for loss of amenities. This means in simple English, that you suffered from less enjoyment.

Some simple examples -

  • you buy an high end stereo system costing $10,000 and the sound that comes out sounds like a $200 system, which you used for 3 months before you obtained compensation,
  • you buy a high end sports car that is supposed to accelerate from 0-100 km/h in 5 seconds but it takes 10 seconds to do so;
  • you are promised a beautiful view when you rent a holiday chalet for a week at East Coast Park but the chalet only faces the rubbish dump.
There is of course no easy way to ascertain how much the loss of amenities is worth but the judge will use the cost of the entire contract as one of the guiding factors.

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