The Remedies of the Seller and the Buyer II

Abstract This chapter deals with the damages liability of defaulting sellers and buyers. It distinguishes expectation and reliance damages, considers the question of gain-based damages, turns to liquidated damages and penalties, and deals at length with remoteness of damage (and whether liability in damages should be determined by the scope of the contractual duty undertaken by the obligor) and issues of causation. Mitigation of damages is discussed at length, also the relationship between mitigation and remoteness and mitigation and anticipatory repudiation. The market rule of damages assessment is also considered, with particular reference to sub-sales entered into by the buyer before a seller’s breach. Particular problems posed by lost-volume sellers and profit-earning chattels end the chapter.