FLK1 · Multiple-choice practice
FLK1 Contract Law — Question 32
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Alice books a taxi to take her to the airport to catch a flight scheduled to depart at 10:00 AM. The taxi service, operated by Bob, assures Alice that the taxi will arrive at her location by 8:00 AM to allow ample time for the journey. However, due to a delay in traffic and a breakdown of one of Bob’s taxis, the taxi arrives at Alice’s location at 9:30 AM, causing her to miss her flight. As a result, Alice incurs additional costs for rebooking her flight, accommodation, and rescheduling her appointments at her destination. Alice decides to take legal action against Bob for breach of contract. Which principle governs the assessment of damages for breach of contract in this scenario?
Answer and explanation
Correct answer: D. The principle of remoteness of damages
The assessment of damages for breach of contract is governed by the principle of remoteness of damages. According to this principle, a party who breaches a contract is generally liable for damages that arise naturally from the breach or those that may reasonably be supposed to have been in the contemplation of both parties at the time the contract was made as the probable result of the breach. In this scenario, the court will consider whether the loss of missing the flight and incurring associated costs was within the contemplation of both parties at the time of booking the taxi. If it is determined that such loss was foreseeable, Bob may be held liable for damages to compensate Alice for the additional costs she incurred as a result of missing her flight. The principle of mitigation of damages also applies, requiring Alice to take reasonable steps to mitigate her losses by seeking alternative transportation options or minimizing her expenses.
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