High Court Upholds Right to Reliance Damages in Breach of Contract Case

In a landmark ruling, the High Court confirmed the entitlement to reliance damages in breach of contract cases. The decision underscored the significance of upholding contractual obligations. The case in question centered on a builder’s failure to honor a construction contract, leading to a breach. The plaintiff, a property developer, sought reliance damages as a remedy.

The High Court’s judgment clarified that the wronged party could claim reliance damages if the contract’s primary purpose was thwarted due to the breach. This ruling holds particular relevance for the building and construction sector, where contractual disputes are common. By affirming the right to such damages, the Court emphasized the need for parties to fulfill their contractual commitments.

Notably, the ruling reiterates the legal principle that parties entering into contracts must act in good faith. Failure to do so can result in significant consequences, as demonstrated in this case. The decision serves as a stark reminder of the importance of abiding by contractual agreements and the potential repercussions of failing to do so.

Read the full story by: The Lawyer Magazine