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29 Aug

Sample 2 – Major Presentation Script / Report FACTS | Good Grade Guarantee!

1Sample 2 – Major Presentation Script / ReportFACTSP, a second-hand car dealer, purchased a car in the wholesale market for $14,000. P contracted to sell thecar to D for $18,000, but D refused to take delivery of the car. P sued D for breach of contract.(1) What damages can P claim?(2) If P later sells the car to another purchaser for $19,000, what damages, if any, would P be entitledto?ISSUESThe two main issues in this case are:(i) P & D are under contract(ii) D refused to take delivery of the carRELATED LAWAccording to the facts of this case, it is under the contract law, breach of the contract leads to the terminationof the contract. As the definition for the breach of a condition, it was stated that: the breach of contract is alegal cause of action and a type of civil wrong, in which a binding agreement or bargained for exchange isnot honored by one or more of the parties to the contract by non-performance or interference with the otherparty’s performance. In this case, D refused to take delivery of the car, it can be concluded that D failed tofulfil his/her obligation as described in the contract, thus leading to the breach of the contract. In addition,P, as the injured party, can treat the contract as discharged and sue for his/her loss.RELATED CASEIn Charter v Sullivan [1957] 2 QB 117, the defendant (S) bought a Hillman Minx car from the plaintiff(C) but refused to accept it. Subsequently, S got better terms from another dealer and withdrew from thepurchase from C. C sold the car to another purchaser at the same price210 days later. C sued S for breach of contract, the trial judge awarded C the dealer’s profit on the retailprice fixed by the manufacturer. However, the Court of Appeal held that C had failed to prove his loss andhe sold the car quickly is corroborative evidence that there was a public demand for the car.SOLUTIONFrom the facts of this case, the defendant breached the contract but the plaintiff had not suffered any loss &still has the car in hand. By referring to the case Charter v Sullivan, only nominal damages can be awarded.Nominal damages are typically small amounts of money awarded to the plaintiff; sometimes the amountcan be as low as $1.00, nominal damages are awarded to show that the plaintiff was right in the lawsuit. Onthe other hand, it can be argued that the difference between the selling price $18,000 and the original costof the car $14,000 is an opportunity cost ($4,000). It can be argued as unliquidated damages, it can be leftfor the judge to decide.Furthermore, if the plaintiff subsequently re-sells the car and the price is higher than $18,000, there is nodamages to be claimed as there is no loss but gain. Where damages are based on the difference in valueprinciple, then market values may be taken into account to assess the plaintiff’s loss. For example, where thedefendant fails to deliver goods or render services, then the plaintiff can go into the market and obtain thesegoods or services at the prevailing price. Therefore, the plaintiff’s damages will be the difference betweenthe market price and the price of the goods or services in the contract. By referring to the Charter case, wherethe seller was able to re-sell the car in question for the same price in 10 days and therefore the damagespayable by the buyer for the non-acceptance of the goods were merely nominal.


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