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

At common law, to be awarded damages for breach of contract, those damages must be in the reasonable contemplation of both parties at the time  the contract was formed. If the damages are too remote, they may not be recoverable under contract law. Both sides must be aware of the  circumstances at the time of formation that would lead to damages if an obligation went un- or underperformed. This may encompass either implied circumstances, if reasonable, or special circumstances that were communicated at the time the contract was formed (''Hadley v. Baxendale'' (1854), 9 Exch. 341). Damages that were  substantially likely and easily foreseeable at the time the contract was formed will be  deemed to have  been in the reasonable contemplation of the parties. Once the '''type''' of loss is found to have been foreseeable, the extent  of damages can be recoverable even if the '''degree''' of damages is so extensive as to be unforeseeable.  

Parties have a common law '''duty to mitigate''' their damages from the date of the contractual breach. In a contract for the sale of goods, this means buying the goods elsewhere and suing the party who breached the contract for the additional amount paid for the goods over the contract price. In a contract for services, such as roof repair, this means hiring another party to do the repairs and suing the original party for the difference in price paid, if any. There is some  jurisprudence that suggests when it is not feasible for a party to mitigate, they are excused from doing so. See ''Southcott Estates Inc v Toronto Catholic District School Board'', 2012 SCC 51.