Breach Of Contract Damages
Summary
In the swimming pool case, the client is likely entitled to £60,000 for the cost of cure due to the builders failure to meet the specified dimensions. In the tree sculpture scenario, the client is not bound to the £5,000 deal as the agent exceeded their authority, allowing the customer to claim damages from the agent for breach of warranty of authority. For the electric car purchase, the client can rescind the contract and claim damages for loss of expectation due to misrepresentation about the cars mileage.Full Conversation
A client, a professional tree sculpture artist, appointed an agent to negotiate new
commissions, but not to finalise deals until the client had approved the scope and
feasibility of projects. Last month a potential customer approached the client and
enquired about transforming a fallen tree into a sculpture. The client took some basic
details and said he would forward them to the client’s agent. The agent visited the
customer, took measurements of the tree and discussed possible designs and likely
time scale. Last week the customer decided on a particular wildlife sculpture and the
agent quoted £*,* for the project. The customer accepted the quotation but the
client is furious and refusing to honour the deal. To make a profit on the project the
client would have to charge the customer at least £*,*.
Which of the following statements best describes the legal position?
A The client is not bound to do the work for £*,* as the agent had no express
authority to conclude the deal.
B The client is bound to do the work for £*,* as the client will be estopped
from denying the agent had authority.
C If the client refuses to do the work for £*,* the customer can claim
damages from the agent for breach of warranty of authority.
D It would be an implied term of the deal that the client would be paid a
reasonable sum for the sculpture.
E The agent will not be liable for breach of the agency agreement as the agent
had apparent authority
The best statement describing the legal position is likely:
C. If the client refuses to do the work for £*,* the customer can claim damages from the agent for breach of warranty of authority.
This is because the agent acted beyond their express authority, and the client did not approve the scope and feasibility of the project as required.
Two weeks ago a client bought a new electric car for personal use from a dealership.
The sales-person had assured the client that the car would do at least * miles
when fully charged. The client had stressed the importance of this and double-
checked before signing the paperwork. The written contract did not mention mileage
per charge. Yesterday the client discovered that the car will do no more than *
miles per charge.
Which of the following statements best describes the client’s legal position?
A The client can reject the car, get a full refund and may be entitled to damages.
B The client will only be entitled to a partial refund as he will be deemed to have
accepted the car.
C The client will be entitled to rescind the contract and claim damages for loss of
expectation.
D Rescission will be barred but the client may be awarded damages assessed
on a tortious basis.
E The client will not have a remedy as sales-puff is not meant to be believed
and is non-actionable.
Given that the salesperson's assurance about the car's mileage was a significant factor in the purchase decision, the client may have a strong position to claim misrepresentation.
The best description of the client's legal position is likely:
C. The client will be entitled to rescind the contract and claim damages for loss of expectation.
Is there any specific location or jurisdiction where this issue occurred? This can help provide more precise legal information.