Legal Remedies Quiz

A gave B a deposit of £100 for a wedding cake, but B wins the lottery and gives up catering. What is the appropriate remedy?

• Expectation loss

• Restitution

• Specific performance

• Nominal damages

Answer explanation

Restitution is appropriate here as A is entitled to recover the £100 deposit since B can no longer fulfill the contract due to giving up catering. Expectation loss and other remedies do not apply in this situation.

C orders a car from D for £20,000, but D’s supplier lets her down, so C has to pay £2,000 more for the car from E. What is the appropriate remedy?

• Reliance loss

• Restitution

• Expectation loss

• Liquidated damages

Answer explanation

The appropriate remedy is expectation loss, as C expected to pay £20,000 for the car. Since C had to pay £2,000 more due to D's failure, the loss reflects the difference between the expected and actual costs.

F booked a 5-star holiday in Italy and is upset to find the resort is run down and has cockroaches in the pool and bugs in the bed. What is the appropriate remedy?

• Disappointment

• Expectation loss

• Restitution

• Nominal damages

Answer explanation

F's disappointment stems from the resort's poor condition, which fails to meet the expectations of a 5-star holiday. This emotional response is the appropriate remedy, as it reflects the gap between expectation and reality.

G pays £5,000 for landscape gardening to H, but the work is so poor G has to pay £5,000 more to fix it. What is the appropriate remedy?

• Specific performance

• Expectation loss

• Reliance loss

• Restitution

Answer explanation

The appropriate remedy is expectation loss, as G incurred additional costs to achieve the expected result from the contract with H. This reflects the loss of what G anticipated from the original £5,000 payment.

J orders a shed from K and pays £1,500 for one that is top of the range. The shed K supplies is a cheap one that is bottom of the range and only worth £500. What is the appropriate remedy?

• Nominal damages

• Liquidated damages

• Expectation loss

• Restitution

Answer explanation

The appropriate remedy is expectation loss, as J expected a top-of-the-range shed worth £1,500 but received a cheap one worth only £500. The loss is the difference between what was paid and the value received.

L is a famous singer and is booked to appear at the Manchester Arena. He spends £10,000 on promotion, but the event was cancelled by the Arena as ticket sales were poor. What is the appropriate remedy?

• Expectation loss

• Reliance loss

• Specific performance

• Nominal damages

Answer explanation

Reliance loss is appropriate here as L incurred £10,000 in promotion costs based on the contract. Since the event was cancelled, he can recover these expenses, reflecting the losses suffered due to reliance on the agreement.

N ordered from O 1,000 designer sunglasses to sell. Each item cost £20 but was to be sold for £50. N promoted these in advance on his website and all were reserved. O then informed N he could not supply them. What is the appropriate remedy?

• Restitution

• Liquidated damages

• Expectation loss

• Disappointment

Answer explanation

The appropriate remedy is expectation loss, as N expected to profit from selling the sunglasses. Since O could not supply them, N loses the anticipated profit of £30 per item, totaling £30,000.

P paid £50 to enter a singing competition. The prize was a contract to appear in a starring role in a musical for a week in London. P got through to the final round, but the organisers forgot to give her an appointment time and day, and she missed the final. What is the appropriate remedy?

• Loss of a chance

• Nominal damages

• Specific performance

• Expectation loss

Answer explanation

The appropriate remedy is 'loss of a chance' because P had a chance to win the competition but was denied the opportunity to compete due to the organisers' mistake, impacting her potential success.

Q was disappointed to find out that a car she wanted to buy from R had been sold to S. However, even though Q bought the same type of car for the same price from T, she successfully sued R for breach of contract. What is the appropriate remedy?

• Liquidated damages

• Nominal damages

• Expectation loss

• Restitution

Answer explanation

Q's successful lawsuit against R for breach of contract, despite buying a similar car, indicates she suffered no actual loss. Therefore, the appropriate remedy is nominal damages, which recognize her legal right without compensating for loss.

U had a contract with V to write an article for a magazine by May 1st. A term in the contract stated that if the article was late, damages of £500 would be paid by U to V. What is the appropriate remedy?

• Specific performance

• Expectation loss

• Liquidated damages

• Reliance loss

Answer explanation

The contract specifies that if the article is late, U must pay V £500. This predetermined amount is known as liquidated damages, which is the appropriate remedy for breach of contract in this scenario.