Contract Law

Ruxley Electronics and Construction Ltd v Forsyth [1995] UKHL 8

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Facts
  1. Forsyth wanted a pool built to seven feet, seven inches but it was built only to six feet, nine inches
  2. The pool was perfectly safe for everything Forsyth wanted it for
  3. Forsyth had no intention of using damages to fix the pool
Held
  1. Mustill LJ: Case presented a unique situation where though the performance was unsatisfactory, the cost of damages for rectification would be absurd
  2. Therefore common sense says you should ‘look to the loss suffered’
  3. Therefore he was awarded a sum for loss of amenities which was significantly less
  4. Lloyd LJ: Though it is usually irrelevant what damages will be used for, it may be considered when assessing ‘reasonableness’

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