Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Damages Paul question
- This topic has 3 replies, 2 voices, and was last updated 6 years ago by MikeLittle.
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- November 26, 2017 at 9:56 am #418045
Paul contracted with green ltd to landscape his garden for $1500. The nearest alternative quote for the work was $2200 from eden ltd. Before due date for performance, green ltd contact paul to say they can no longer do the work
What damages can Paul claim for this contract?
a) $2200 only
b) $700 only
c) both $2200 and $700
d) neither $2200 nor $700Correct answer is b). But should not the answer be d)? Because as we know that it is the duty of victim to mitigate his lose till maximum possible extent. If the victim fails to mitigate his loss then no remedy will be awarded for the loss which could have been mitigated. And thus he can only recover nominal damages??
November 26, 2017 at 10:50 pm #418175He wants a wall to be built. Green defaulted on the contract, but Paul still wants a wall to be built
So he can get the wall built for $2,200 and claim $700 from Green
He might have been tempted to get the job done more expensively … but he didn’t because that would not have been mitigating his loss
What’s the problem?
November 27, 2017 at 7:18 am #418342So on this scenerio, does Paul has mitigated his loss? If yes, then of what amount he has mitigated his loss?
November 28, 2017 at 1:09 am #418494Yes, because he hasn’t gone and found an alternative supplier that could have charged more
Your post actually states “… the nearest alternative quote …” and that suggests that Paul has got a number of quotes and the one that mitigates the loss to the greatest extent is for $2,200
Ok?
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