What Is the Significance of the House of Lord's Decision

question 16

Multiple Choice

What is the significance of the House of Lord's decision in Attorney-General v. Blake (2000) for the traditional rules governing the award of damages?

• A) It allows a claim for the reliance interest in exceptional cases where the claimant has made a bad bargain (the costs of performance would exceed his expected gains) and the expectation interest is inadequate.
• B) It allows a claim for non-pecuniary losses in exceptional cases where the provision of enjoyment, peace of mind, or alleviation of distress is a distinct and important obligation under the contract.
• C) It allows a claim for the contract breaker's gains or savings from breach in exceptional cases where contract remedies are inadequate and the claimant has a 'legitimate interest' in preventing breach.
• D) In contracts for the benefit of third parties, it allows the promisee to claim substantial damages for the loss performance of the obligations for which he has contracted.