Contract Law Assignment: Critical Analysis Of Law Suites



Question 1 Matilda opened an accounting business and contracted with Quick Computers Ltd to supply her with the latest computer system by no later than April in the year. Quick Computers Ltd was two months late in delivering and installing the system. As a result, Matilda lost $25,000 in ordinary revenue. However, she also lost a lucrative contract to do a one-off urgent auditing job for a busy new client. Matilda bought the computer system expecting that it would be available to help with these contracts.

Required With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Matilda as to the damages that she may recover. Please explain fully, using relevant legal authority.


The first problem with the assignment of contract law is as follows:

• In the event of a contract violation, what damages can the injured party recover?

applicable legal standards

In the event of a contract violation, a party may be entitled to obtain a variety of damages. Ordinary damages, liquidation damages, punitive damages, compensatory damages, and nominal damages are the primary categories of damages in this context (Mullen, 2015). The purpose of compensatory damages is to make up for any losses suffered by the aggrieved party as a result of the breach of the contract. They take the form of monetary awards. Furthermore, the purpose of these damages is not to punish the party who violated the agreement (Ganglmair, 2017). There are two different categories of compensatory damages that are listed below:

damage expectations

The non-breaching party is allowed to collect the anticipated sum that can be obtained from the contract in this sort of damages (Axelrod, 2017).

Damages as a result

These damages are intended to cover any indirect losses suffered by the aggrieved party that go outside the scope of the contract. These damages may include a loss of revenue for the company as a result of the failure to supply a certain piece of equipment. In order to calculate consequential damages, the injured party must determine what the immediate result of the contract violation was. Additionally, both parties may fairly determine it at the time the transaction is initiated (Golden, 2016). Damages were granted to the party in the legal dispute between Luna Park (NSW) Ltd and Tramways Advertising Pty Ltd due to a contract breach (Australian Contract Law 2019).

application of legal principles and guidelines in the scenario at hand

In the current contract law assignment case, a contract was made between Matilda and Quick Computer Ltd. In accordance with this contract, Quick Computers Ltd. was unable to deliver the computer system by the deadline. Due to the contract's breach, Matilda suffered a loss of $25,000 in regular earnings. In other words, it might be claimed that Matilda lost money as a result of Quick Computers Ltd.'s failure to provide the computer equipment.