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CHAPTER 9 Damages for breach of contract: Measure of damages

Remedies in Construction Law


Page 97

CHAPTER 9

Damages for breach of contract: Measure of damages

Damages for breach of contract: Measure of damages

1

9.1 The appropriate measure of damages for breach of contract depends in the first place upon the nature of the breach of contract. Thus, if the claim is for breach of a contract to supply goods where there is an available market for the goods in question, the measure of damages is prima facie the difference between the contract price and the market or current price at the time or times when they ought to have been delivered or (if no time was fixed) at the time of the refusal to deliver:2 so, for example, if there is a contract to supply radiators at £100 each, which is not honoured so that a contractor has to buy radiators from the local builders’ merchant at £105 per radiator, the measure of loss is £5 per radiator.

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