Difference between revisions of "Contracts for Sale of Goods (11:III)"

In a contract for the sale of goods governed by the ''SGA'', the standard measure of damages is “the estimated loss directly and naturally resulting, in the ordinary course of events, from the breach” (s 56(2)). Where the warranty pertained to quality of the goods, the loss will be calculated as the difference between the cost of obtaining the goods in the market and the contract price of the goods (s 56(3)). Thus a buyer who has negotiated a good deal can recover the difference between his or her expected savings and the market price. Section 57 states that s 56 does not affect recovery of special damages or interest, if otherwise available by law. The common law governs the recovery of  special damages. For special damages to be recoverable, both parties must have been made aware of their possible incursion at the time of formation of the contract.