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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › damages and nominal damages
Az Ltd operates a shipbuilding business which specialises in constructing and modifying ships to order. In 2011, Az Ltd entered into an agreement with Bob to completely rebuild a ship to Bob’s specification for a total contract price of £7 million. However after completion, Bob informed Az Ltd that, due to the downturn in the world economy, he no longer needed the ship. Az Ltd had already expended £5 million on altering the ship, and immediately started an action against Bob for breach of contract.
However, in the week before the case was to be decided in the court, Az Ltd sold the ship for the same amount of money that they would have received from Bob
Sir in the above scenario would nominal damages be awarded to Az ltd?
Probably, yes
The normal rule for a award of damages is the measure of compensation for loss suffered.
Since Az has suffered no loss, then only nominal damages would be likely
OK?