ABSTRACT
In Ruxley Electronics and Construction Ltd v Forsyth [1995] EGCS 117, Lord Bridge of Harwich considered that:
Since the law relating to damages for breach of contract has developed almost exclusively in a commercial context, these criteria normally proceed on the assumption that each contracting party’s interest in the bargain was purely commercial and that the loss resulting from a breach of contract is measurable in purely economic terms. But this assumption may not always be appropriate.
Surveyors should appreciate that quantification of a loss is not necessarily a straightforward mathematical calculation based on the economic or commercial positions of the parties. It may also involve an assessment of all shades of risks and possibilities; and may involve an assessment of a loss of a chance, amenity or other losses. These factors consistently lay at the heart of leading case law judgments and should form the cornerstones of any surveyor’s appraisal of loss.