The Minimum Performance Rule in Contract Damages

17 Pages Posted: 20 Nov 2019 Last revised: 13 Dec 2019

See all articles by David McLauchlan

David McLauchlan

Victoria University of Wellington - Faculty of Law

Date Written: November 18, 2019

Abstract

This article challenges the long-standing rule concerning the assessment of damages for breach of contract that, where the contract allows for alternative methods of performance by the promisor, damages are to be calculated by reference to the minimum level of performance provided for in the terms of the contract. It is argued that the rule is inconsistent with the compensatory principle and that, since it has been undermined by various qualifications or exceptions that severely curtail its operation, it would improve the coherence of the law of damages if it were abandoned.

Keywords: minimum performance rule, breach of contract, damages

JEL Classification: K12

Suggested Citation

McLauchlan, David, The Minimum Performance Rule in Contract Damages (November 18, 2019). [2019] LMCLQ 75; Victoria University of Wellington Legal Research Paper No. 124/2019. Available at SSRN: https://ssrn.com/abstract=3489540

David McLauchlan (Contact Author)

Victoria University of Wellington - Faculty of Law ( email )

PO Box 600
Wellington, 6140
New Zealand

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