The principle that governs the type of compensation a party will get when a breach of contract occurs is determined by: i. The actual loss which occurs directly as a result of the breach of the contract. ii. The loss which results from some special circumstance of the case communicated to the other party who caused the breach. See HADLEY v. BAXENDALE (1848) 9 EX 341 EMEKA v MNC (1976) 6 E.C.S.L.R 280.
No, the breach of contract enables the innocent party to claim compensation against the party guilty of the breach. The innocent party need not suffer any breach. However, the amount that the innocent party will receive as compensation depends on the discretion. See GBEMISOLA v BOLARINWA & ANOR (2014) LPELR – 224663 SC
While “X” will succeed and recover compensation for the breach compensation for the breach of contract he suffered “X” cannot recover any greater sun than he would ordinarily have recovered if he had acted reasonably if he had acted reasonably. The law imposes a duty on “X” to mitigate his damage (loss) in the event of the breach of his contract See RCC (Nig) Ltd vs. RPC LTD (2005) 10 NWLR (PT 934)615. “X” cannot recover compensation for damages to his property that he could have avoided. See RCC (NIG) LTD VS. RPC LTD (2005) 10 NWLR (PT 934) 615; BROTHERS NIG LTD VS. ONA JONES NIG LTD (2012) LPELR – 9789 (CA)
In law, when time is clearly stated in a contract, the court will see it as a fundamental term and a breach of it will deeply affect the party who did not keep to such term (agreement). TSKJ Nig Ltd V. Ofochem Nig Ltd (2008)8 CLRN 55 – Decontrol Nig Ltd V. Council of Obafeni Arolowo University (2005) 15 NWLR (pt948)290 at 3130.
Generally, the measure of damages for breach of contract of sale of goods where there is a market value for them is the difference between the contract price and the market price of the goods at the time of refusal to deliver. For instance where “A” agrees to sell goods to “B” at an agreed price and “A” fails to fulfil his promise, if “B” proceeds to buy the goods from another person at the price of N70 “B” can only claim damages against “A” for N70. AGABAJE (1922) 4 NLR8.; SECTION 50 AND SALES OF GOODS ACT 1893; HADLEY v BAXENDALE (1848) 9 Ex 341.
No, the court generally do not grant specific performance of contracts of personal nature, this is because the court may not effectively super vise the work. See IFETA V S.P.D.C NIG LTD (2006) 8NWLR (PT 983) 585; U.N.T.H.M.B V NNOLI (1994) 8 NWLR (PT 363) 376.
Yes, sometimes the court may award what is known as furniture damages against a party guilty of breach of contract to serve as deterrent for such breach. See USO v IKETUBOSIN (1957) WRNLR 187
Yes, the innocent party can approach the court to compel the contract breaker to carry out his own obligation in the contract. This is usually where compensation is unsatisfactory. See AFROTEC TECH SERVO (NIG) LTD V MIA & SONS LTD (2000) 15 NWLR (PT 692) 730.
No a third party has no business in enforcing an agreement of this nature, only a party to a contract can sue and be sued on it . As a stranger to the sale agreement, a third party did not furnish consideration and cannot take an action even if such agreement was entered for his benefit. Authority- Okechuku Anuria v. abnegator Community Bank Ltd and Anor. (2008) 7 LLRN 8.
Damages for breach of contract are intended to compensate the person who suffered as a result of such breach of contract if a person sues for a breach of contract damages will be ensured to put the person who suffered the breach in a position he would have been if such breach never occurred. TSKJ Nig. Ltd. v. Ofochen Nig. Ltd (2008) 8 CLRN 55. Omega Bank Nig. PLC v. 0BC Ltd (2005)8 NWLR (Pt. 928) 547.
Yes, assuming Mr. Sunday entered into a sale agreement with Mr .Samuel (who is buying a car on behalf of John who is a minor) John whose not an original party to the contact can sue because Mr. Samuel acted only as his (John) trustee. Authorities- Okechuchukwu Anuria V. Ebenator Community Bank Ltd and Anor (2008) 7 CLRN 48. New India Assurance Co V. Odubanjo (1971) 1 NWLR 363.