ABSTRACT
Mr Mardon is not to be compensated here for ‘loss of a bargain’. He was given no bargain that the throughput would amount to 200,000 gallons a year. He is only to be compensated for having been induced to enter into a contract which turned out to be disastrous for him. Whether it be called breach of warranty or negligent misrepresentation, its effect was not to warrant the throughput, but only to induce him to enter the contract. So, the damages in either case are to be measured by the loss he suffered. Just as in Doyle v Olby (Ironmongers) Ltd [1969] 2 QB 158, 167, he can say: ‘... I would not have entered into this contract at all but for your representation. Owing to it, I have lost all the capital I put into it. I also incurred a large overdraft. I have spent four years of my life in wasted endeavour without reward: and it will take me some time to reestablish myself.’
