ABSTRACT

When a contract is discharged for breach, we have already seen that the distinction between debt and damages can be of relevance because the remedy of debt is, in truth, a kind of specific performance of the contract (cf above § 8(d)). It is a remedy that grows directly out of the primary contractual obligation itself.277 A damages claim, in contrast, does not arise out of the primary contractual obligation; it is a ‘secondary obligation ... to pay monetary compensation to the other party for the loss sustained by him in consequence of the breach’.278 This difference gives rise to some teasing questions.