21 May EXPLAIN THE PRINCIPLES THAT GOVERN THE AWARD OF DAMAGES IN CONTRACT LAW?
The Question
Part 1 (approximately 1000 words)
Explain the principles that govern the award of damages in contract law? What are the differences between expectation loss, reliance loss and ‘lost chance’ damages?
Part 2 (approximately 1000 words)
Grantchester Rovers Football Club, who play in National League Division 3, was taken over by a consortium of local business people who were keen to get the club promoted and play a higher standard of football. The club was told by the League Committee that they would need to upgrade both the ground itself and the playing surface in order to be eligible to play in Division 2 and Division 1. The League told the club that all improvements must be completed and approved by July 31st to be eligible to start the following season in a higher league.
The club invested money in players and by Christmas 2017 it was leading Division 3 and seemed certainties for promotion. Bearing in mind the requirements of the League the consortium started to think about both ground and pitch improvements. The club duly won Division 3 and became eligible for promotion subject to a satisfactory inspection.
The improvements to the pitch were to be carried out by GK Turf Specialists who are experts in this area. GK Turf provided a quote for £15,000 to cover extensive renovation and top dressing. A specialist machine would be used to drill holes and improve drainage thus promoting growth of the grass. The club agreed and the work was scheduled to be carried out at the end of the season with a view to the pitch being ready for inspection by the League in the third week of July. Unfortunately, during the first two weeks of June there was a great deal of rain and the pitch became very wet. Despite the adverse conditions GK Turf carried out the operation as the company was concerned it wouldn’t otherwise get it completed on time. The process of drilling and seeding is not recommended by most experts in wet conditions.
Because of the wet ground the end result was a pitch in worse condition than when they started with lots of ruts and bumps so Granchester refused to pay GK’s invoice. Furthermore, it contracted with a new company, Pitch Experts, to put right the damage caused by GK Turf.
Pitch Experts carried out work to restore and then bring the pitches up to ‘Division 2 Standard’ at a cost of £22,000. Within this price was £4,000 of additional work on the training ground. However, the work was not completed by July 31st and the League told Granchester that the club was not eligible for promotion which was a serious blow to the club. It had already contracted players on higher wages and will now lose the key sponsor who was investing an extra £30,000 into the club on the basis of Division 2 football. The other ground improvements also cost the club £10,000.
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