Flame SA v Glory Wealth Shipping PTE Ltd [2013] EWHC 3153 (Comm); [2013] WLR (D) 400
“The purpose behind the compensatory principle underpinning the assessment of an award of damages for a repudiatory breach of contract was to put the innocent party in the position it would have found itself had the other party fulfilled its obligations. It was for the innocent party to prove its loss which in turn required it to prove that had the breach not occurred it would have been able to fulfil its obligations under the contract. Any identified inability to perform its future obligations which could have prevented the innocent party from receiving what was due to it under the terms of the contract had to be taken into account in the assessment of the level of the award of damages for the repudiatory breach to prevent the innocent party obtaining windfall damages.”
WLR Daily, 22nd October 2013
Source: www.iclr.co.uk
