Thorpe V Pornd Case Study
2.0 Exceptions
Generally, where a buyer agreed to pay more than the subject-matter is worth, the buyer cannot recover substantial damages in respect merely of the non-conformity of the goods delivered to him if those goods are worth no less than they would have been, if he had been in conformity with the contract.
Under the common law, damages are generally irrecoverable for the loss of reputation and credibility. However under certain circumstances, damages for loss of reputation may be granted. In the case of Addis v Gramophone Co. Ltd , the plaintiff was employed by the defendant as a manager. However, the defendant in breach of contract dispensed the plaintiff’s services and replaced him with a new manager. The plaintiff then brought an action for breach of contract claiming that the level of damages should reflect the circumstances in which he was dismissed has damaged his reputation and ability to find suitable employment. Initially the plaintiff was awarded damages.
However the defendant later appealed against that part of the award which was to compensate plaintiff for the harsh and humiliating way in which he had been dismissed.Lord Atkinson referred to the case of Thorpe v. Thorpe and held
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In the case of CCA Holdings Ltd v Palm Resort Bhd , plaintiffs were hired by the defendant’s club as managers of the club under a technical assistance and managerial agreement. Later on, the defendant terminated the agreement on the ground that the club had not generated profits as required in the agreement. The plaintiffs alleged that the termination has caused them to suffer loss of reputation and goodwill which will affect their career as the managers of prestigious clubs internationally. The plaintiff applied for an interim injunction to restrain defendant’s club from removing them as managers of the club and a also a mandatory injunction to restore their positions as
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