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Action for price or damages?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Action for price or damages?

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 27, 2023 at 3:37 pm #689021
    whydoyoucare
    Participant
    • Topics: 50
    • Replies: 46
    • ☆☆

    Trucker contracted with Inward plc to carry goods by road to Inward pl for £5,000. Trucker performed the contract but the amount due remains outstanding.
    Trucker may
    A recover damages for breach of contract subject to its obligation to take reasonable steps to
    mitigate its loss
    B apply for an order of specific performance to force Inward pl to pay
    C sue for the price without any obligation to mitigate
    D take back the goods from Inward plc if it still has them

    Can I please get to know why it’s not A and why is C the answer? How to differentiate between when action for price and when damages are payable?

    July 27, 2023 at 8:25 pm #689038
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23303
    • ☆☆☆☆☆

    What damages has Trucker suffered? This is simply a commercial contract – you do this and I’ll pay you.

    I haven’t paid you so you’ll sue to recover the contract price

    Now consider this situation. You order 100 young trees from me to be delivered to you. I deliver them on your instruction to a country 5,000 kilometers away but the consignee refuses to accept delivery. That would be a case for claiming damages subject to an obligation to mitigate loss.

    Is that better for you?

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