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Damages scenerio Paul

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Damages scenerio Paul

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
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  • November 28, 2017 at 7:25 am #418527
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    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 $700

    Correct answer is b).

    Sir please explain me 2 things
    1) why Paul cannot claim $1500 or $2200
    2) If there were several alternatives quotes for getting the job done, like $2200, $2500, $3000 and among these quotes if he had chosen the quote of $2500, then how much damages he would be able to claim?

    November 28, 2017 at 8:02 am #418535
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Because he was already committed to paying Green $1,500

    He can only sue Green for the EXTRA amount that he has had to pay

    I have already explained this! He has a duty to mitigate his loss so he is not allowed to claim for an amount greater than the least surplus over the original quote for Green

    OK?

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  • The topic ‘Damages scenerio Paul’ is closed to new replies.

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