Zahedpur v Idameneo (No 123) Pty Ltd

[2016] QCA 134

Queensland Court of Appeal

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Interrogate

Catchwords

1. Contract
2. › General contractual principles
3. › Discharge, breach and defences to action for breach
4. › Whether party in breach where contractual obligations conferred discretion on other party
5. › Whether failure to provide appointment system constituted breach
6. › Whether alleged breaches justified termination
7. › Whether departure from premises constituted fundamental breach or repudiation
1. Contract
2. › General contractual principles
3. › Termination
4. › Contractual right to terminate for serious breach
5. › Whether notice to remedy required before termination
6. › Whether breach of non-essential term precluded rescission for fundamental breach by other party
1. Damages
2. › Measure and remoteness of damages in actions for breach of contract
3. › Loss of profits
4. › Where quantum of lost profits cannot be fairly established
5. › Whether plaintiff entitled to reliance damages for wasted expenditure
6. › Presumption that plaintiff would have recovered at least its expenditure from performance
1. Damages
2. › Measure and remoteness of damages in actions for breach of contract
3. › Reliance damages
4. › Wasted expenditure as alternative measure
5. › No election required between expectation and reliance measures
6. › Onus on defendant to prove contract would have been unprofitable

Quick Take

Where a plaintiff proves that it suffered loss from breach of contract but cannot fairly quantify the amount of lost profits, it may recover reliance damages assessed by reference to its wasted expenditure, applying Amann Aviation. The plaintiff need not elect between expectation and reliance measures. The payment of $500,000 nominally for the purchase of a medical practice's goodwill was characterised as, in substance, expenditure to secure the doctor's services for the contracted term, and was recoverable as wasted expenditure pro rata for the unperformed portion of the contract.