How the courts assess how damages are awarded

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Essay on Critically explain how the courts assess how damages are awarded for breach of contract and discuss how terms are implied into contracts and how they may be classified as either conditions,warranties, or innominate terms. Paper must be at least 250 words. In some cases, the court can award liquidated damages where contract conditions stipulate the same. In some other cases, a court can award restitutionary damages or expectation loss for infringement of a contract condition. Restitutionary damages of a substantial amount can be awarded to a claimant by a court, even though the claimant has not suffered any damages at all (Stone & Devenney 2014:225).Contracts also include implied terms, which are not written already in the contract. The main aim of implied terms is to complement a contractual agreement for making the business more efficient and to accomplish fairness. Implied terms in a contract may be by a statue or by the courts. For instance, in former case, s.15 of Sale of Goods Act 1979 states that products to be supplied should be analogues to the sample shown as held in Poussard v Spiers (1876) 1 QBD 410 . Courts can interpret implied terms by a matter of fact or a matter of law or through a customary term. In a contract, an implied warranty is bestowed by law or custom as held in Bettini v Gye 1876 QBD 183 and has the same impact as a written or express warranty. For example, seaworthiness of the vessel when goods are sent through a ship is an implied warranty. In Hong Kong Fir Shipping, the category of an innominate term was established. In some contracts, parties should clearly identify what are conditions and what are warranties. This will help in case of infringement of contract to assess the damages as held in Hong Kong Fir Shipping v Kawasaki Kisen Kaisha [1962] 2 QB 26 (“E-Lawsources.co.uk 2014”)

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