- Breach of warranty—measure of damages in contract and tort (Karim v Wemyss)
- Practical implications
- What was the breach of warranty claim?
- The different measure of damages in contract claims and tort claims
- The pleaded heads of loss
- The alternative claim for damages for breach of warranty
- Entitled to damages on both the tortious and contractual measure—which to choose?
- Calculating damages in the absence of valuation evidence
- The damages for breach of warranty as assessed by the court
- Court details
Dispute Resolution analysis: In a dispute concerning a warranty as to turnover and profit following a business sale, the Court of Appeal has considered the differing consequences of pursuing the damages claim as either a warranty claim (breach of contract) or as a claim for misrepresentation (claim in tort)—the distinction being the different measure of damages in contract and of those in tort. The judgment summarises the applicable principles and provides hypothetical illustrative examples. It also indicates the value of obtaining expert evidence to support a claim, albeit the absence of valuation evidence in this case was not fatal to the recovery of damages on the contractual measure.
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