Parole Evidence Rule- after you have written an agreement or document that represents terms of
contract, you can not act in ways that are not conducive to the original agreement. No means of
Example- a debt of $100, but you can only pay $50 and your creditor accepts, that promise is legally
Equitable remedy for contract law- “I will make you do what you said you were going to do”
-Specific performance compels people to do things
-Discretionary: i.e. court still has discretion to make final decision
Specific performance- you must prove that your claim requires more than just monetary damages. Land
is the best example. Contract of personal service is not sufficient because the court doesn’t want to
force professional relationships
Purpose of damages in contract law- to put plaintiff in the position they would have been, had the
contract been performed
-ideal, difficult to figure out
When a contract specifies damages that may occur if someone sues, that is called liquidative damages
Case Study: Hadley vs. Baxendale
-Hadley needed a part delivered by a carrier (Baxendale)
-Needed same day delivery, carrier’s representative said that it could be done, but it wasn’t
-Hadley needed to shut down the factory for a couple days as a result of not having the part, and sued
Baxendale for loss of profits
-At trial, jury found that they could recover money for loss of profits. On appeal, the judge decided that
what the parties would reasonably expect the damages to be as a result of breach of contract
-Plaintiff must explicitly state what, in the usual course of things, or things that may reasonably be in
the contemplation of parties, would occur or what would be lost in order to determine damages
-What is reasonable?
-The judge found that the defendant was not informed about the potential loss of profit as a result of the
contract not being performed. However, a reasonable person would expect this outcome.
Case Study: Jarvis vs. Swans Tours
-Jarvis is a solicitor who was planning on going for Switzerland for Christmas. Two weeks in the
-Jarvis was very disappointed with his holiday. Few people at the “parties”, no skis that fit, slopes far
away from the hotel, unfortunate food and bar
-Sued for his money back and for general damages
-Won at trial, but you can only sue for what you should have received. Judge gave him half his money
back. He appealed, and received damages because he “paid for fun” and didn’t have any. Won $125.
Newell et al. vs. Canadian Pacific Airlines ltd.
-Newell had just had a heart attack, went to Mexico to relax. Brought dogs with him who were in
perfect health when they left.
-Told CP Airlines how important the dogs were to them, even offered to